Nanjing Panda Electronics : 2020 PRELIMINARY ANNUAL RESULTS ANNOUNCEMENT

March 26, 2021 at 11:25 am EDT

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

2020 PRELIMINARY ANNUAL RESULTS ANNOUNCEMENT

I. IMPORTANT NOTICE

1 This summary of annual report was extracted from the Annual Report of Nanjing Panda Electronics Company Limited (the "Company") and its subsidiaries (collectively as the "Group"). To have comprehensive knowledge of the operating results, financial position and future development plan of the Company, investors are advised to carefully read the full text of the annual report on the website of the Shanghai Stock Exchange and other media designated by China Securities Regulatory Commission.
2 The board of directors (the "Board"), the supervisory committee and the directors, supervisors and senior management members of the Company confirm that the information contained in this summary of annual report is true, accurate, and complete without any misrepresentation, misleading statements, or material omissions, and severally and jointly accept legal responsibility for the above.
3 All directors of the Company attended the meeting of the Board held on 26 March 2021.
4 BDO China Shu Lun Pan Certified Public Accountants LLP issued an unqualified auditors' report for the Company.
5 Proposal of profit distribution or capitalization of capital reserves of the Company for the reporting period considered by the Board.
To distribute a cash dividend of RMB0.26 (tax inclusive) for every ten shares to all the shareholders on the basis of a total share capital of 913,838,529 shares as at 31 December 2020, with the total cash dividend to be distributed amounting to RMB23,759,801.75, and the balance to be carried forward to next year. The Company would not make any capitalization of capital reserve.

II. INFORMATION ABOUT THE COMPANY

1 Basic Information of the Company

2 Information on principal activities during the reporting period


Stock type
A share
H share
Contact person	Secretary	Securities Affairs
and information	to the Board	Representative
Name	Wang Dongdong	Wang Dongdong
Office Address	7 Jingtian Road, Nanjing,	7 Jingtian Road, Nanjing,
the People's Republic of	the People's Republic of
China	China
Telephone	(8625) 84801144	(8625) 84801144
E-mail address	dms@panda.cn	dms@panda.cn

Stock name before change

Stock ProfileListing stock exchangeAbbreviated name
Stock Code
Shanghai Stock
Nanjing Panda
- 600775 N/A
  Exchange
  The Stock Exchange of Hong Kong Limited
  Nanjing Panda
- 00553 N/A
2.1 Principal activities

The Company takes smart city, intelligent manufacturing and electronic manufacturing services as its three main businesses. In the field of smart city, the Company develops business including smart transportation and safe city by using technologies such as big data, cloud computing, artificial intelligence and 5G; in the field of intelligent manufacturing, it committed to providing core equipment of intelligent manufacturing and overall solutions proposals based on industrial internet, providing overall planning for enterprises to achieve industrial automation transformation, reshaping the core competitiveness of manufacturing enterprises and achieving sustainable innovation and growth; in the field of electronic manufacturing services, it provides research and development and electronic manufacturing service for 3C, new display module components, white electricity man-machine interaction display and control assembly, automotive electronics and communication equipment and other electronic products for domestic and overseas brand manufacturers through smart, flexible and lean management.

2.2 Operating model
Guided by market and customers demands, the Company enhances its core competitiveness through innovation on technological research and development innovation, business model innovation, incentive model innovation and talent training model innovation, and consolidates its development foundation by overall lean management to build a new pattern of innovation and development.
The Company deployed business areas related to smart city, intelligent manufacturing and electronic manufacturing services, organized research, development and production based on market and customer demands, and finally realized the delivery of an overall solution for core equipment products and system as well as system engineering projects. Through providing integrated services to customer, the Company continuously strengthens the depth and breadth of cooperation with customers, creates more value for them and ultimately achieves development for both the Company and customers.
2.3 Industry overview
In 2020, the added value of electronic information manufacturing industries above designated size increased by 7.7% year-on-year, and growth rate dropped by 1.6 percentage points compared to last year. Operating revenue of electronic information manufacturing industries above designated size increased by 8.3% year-on-year, representing an increase of 3.8 percentage points on its growth rate compared to last year. Total profit increased by 17.2% year-on-year, representing an increase of 14.1 percentage points on its growth rate compared to last year. The profit margin of operating revenue was 4.89% and the operating costs increased by 8.1% year-on-year.
The concept of new infrastructure has been deepening and refining continuously since 2020, mainly including seven major areas of 5G, big data centre, artificial intelligence, industrial internet, ultra-high voltage, new energy vehicle charging piles and urban rail transit, which significantly promoted the rapid development of smart city, intelligent manufacturing and electronic manufacturing services. The 2020 Government Work Report of the State Council proposed to focus on supporting the construction of new infrastructure.

Smart city is gradually moving towards a stage of high-quality construction and development, and is playing an important role in application scenarios such as smart transportation, smart governance, smart livelihood and smart applications. Among them, in respect of urban rail transit, in 2020, 39 urban rail transit lines were newly added, with an additional operational mileage of 1,240.3 km, representing an increase of 20.1% compared to last year. As at 31 December 2020, 233 urban rail transit lines have been opened and operated in 44 cities in China (excluding Hong Kong, Macao and Taiwan), with an operational mileage of 7,545.5 km, 4,660 stations, 25.28 million trains operated and passenger capacities reached 17.59 billion. Urban rail transit has become an important application vehicle for smart transportation.

Intelligent manufacturing engineering has become an important aspect for China to build itself as a strong manufacturing state, and intelligent manufacturing equipment industry system has also formed its initial shape. In 2020, the total amount of investment and financing on the intelligent manufacturing industry of our country amounted to RMB25,261 million, representing a significant increase as compared with that of 2019. Meanwhile, the 2020 Government Work Report clearly pointed out that it is necessary to promote the upgrading of the manufacturing industry and the development of newly emerging industries, which includes the development of the industrial internet and the promotion of intelligent manufacturing, and the industrial internet will be fully integrated with 5G technology in the future, becoming an important application scenario in the 5G era.

With the continuous enhancement of the overall competitiveness of the electronic information manufacturing industry in China, and under the influence of the strategic objectives of improving quality and efficiency and sustainable development, many brand owners are focusing more on branding as well as research and development, and the mode of entrusting EMS companies with the processing and manufacturing of products is becoming prevalent. Professional electronics manufacturing service enterprises have continuously improved their process, efficiency, quality and supply chain services in face of the market demand for the electronic product manufacturing industry, which had a profound impact on the adjustment of the electronic information industry, the layout of the supply chain and the management of the value chain. After years of development, a relatively stable division of labour and cooperation has been formed between brand owners and EMS companies. The upstream and downstream supporting industry chains for consumer electronics, communications equipment, computers and network equipment have become mature, and professional electronics manufacturers have become core participants in the electronic information industry chain.

Major Accounting Data and Financial Indicators of the Company

3.1

Major accounting data and financial indicators (prepared in accordance with the Accounting Standards for Business Enterprises of China)

Unit: YuanCurrency: RMB

Key accounting data

Total assets Operating revenue

Net profit attributable to shareholders of the

Company

Net profit attributable to shareholders of the Company after extraordinary items

2020

2019

6,001,947,699.44 6,020,147,479.47 3,952,265,022.15 4,660,047,001.92

77,318,175.74

52,657,894.58

18,254,992.01

25,447,136.36

Net assets attributable to 3,509,430,717.97 3,448,072,752.25 shareholders of the

Company

Net cash flows from

operating activities Basic earnings per share

(RMB/share)

Diluted earnings per share

(RMB/share) Weighted average returnYear-on-year increase/ decrease

2018

2017

2016

(%)

-0.30 6,184,619,023.98 5,665,503,486.59 5,239,976,417.98 -15.19 4,500,505,653.14 4,191,928,908.95 3,702,763,356.54

46.83

161,959,568.48

107,382,077.64 119,240,512.92
-28.26
113,580,264.77
72,409,859.11 40,497,347.32

1.78 3,468,424,299.40 3,363,593,136.77 3,320,270,553.39

534,653,617.28

-341,233,848.13

N/A

0.0846

0.0576

46.83

0.0846

0.0576

46.83

on net assets(%)

2.22

1.49 Increased by 0.73 percentage point

45,563,017.57

157,549,565.01

53,146,796.65

0.1772

0.1175 0.1305

0.1772

0.1175 0.1305

4.73

3.20 3.67

Explanations on major accounting data and financial indicators of the Company as at the end of the Reporting Period:

The increase in net profit attributable to shareholders of the Company as compared to the same period of the previous year was mainly due to the increase in extraordinary profit and loss as a result of the deduction of part of social insurance due to the COVID-19 for the period. The decrease in the net profit attributable to shareholders of the Company after deducting extraordinary profit and loss as compared to the same period of the previous year was mainly due to the decrease in revenue from smart manufacturing business and the further decline in its benefits of the Company for the period as a result of the impact of the COVID-19 pandemic and the adjustments of business structure.

3.2 Major Accounting Indicators by Quarters in the Reporting Period

Unit: Yuan Currency: RMB

Q1 (January to	Q2 (April to	Q3 (July to	Q4 (October to
March)	June)	September)	December)
Operating revenue	710,912,672.84	1,003,242,341.52	1,050,856,587.79	1,187,253,420.00
Net profit attributable to	-40,709,426.01	53,392,580.92	10,821,625.29	53,813,395.54
shareholders of the Company
Net profit attributable to	-48,805,178.21	49,733,796.87	8,802,433.30	8,523,940.05
shareholders of the Company
after extraordinary items
Net cash flows from operating	58,601,652.23	29,676,653.05	165,401,875.41	280,973,436.59
activities

4 Particulars of Share Capital and Shareholders

4.1 Number of holders of ordinary shares and shareholding of top 10 shareholders

Unit: share
Total number of shareholders of	60,558 shareholders including
ordinary shares as at the end of	60,532 A shareholders and 26 H
the reporting period	shareholders
Total number of shareholders	55,188 shareholders including
of ordinary shares at the end	55,162 A shareholders and 26 H
of last month prior to the	shareholders
disclosure of the annual report

Shareholdings of top 10 shareholdersIncrease/ decrease during the

Number of shares held at the end of Percentagereporting the reportingName of Shareholder

Hong Kong Securities Clearing Company Nominees Limited Panda Electronics Group Limited

China Huarong Assets Management Co., Ltd. Nanjing Electronics

Information Industrial Corporation

Guoxin Investment Co., Ltd.

Zhao Dongling ( Ⴛ؇Ꮚ)Ma Jiangfeng ( ৵Ϫࢤ)Industrial and Commercial Bank of China - Guotai CSI Composite Index Communication Equipment ETF Securities Investment

Fund ( ʕ਷ʈਠვБٰ΅ Ϟࠢʮ̡ - ਷इʕᗇΌ ܸஷڦண௪ʹ׸ۨක׳ όܸᅰᗇՎҳ༟ਿږ)

ofNumber of shares held subject to trading

periodperiod shareholding moratoriumPledged or frozen SharesStats of shares

Number Type of of shares shareholders

(%)

2,080,189

-674,800

246,269,656

210,661,444

64,471,891

35,888,611

26.95

23.05

7.06

3.93

UnknownUnknownUnknownUnknown

Overseas legal person State-owned legal person State-owned legal person State-owned legal person

21,720,941

2,451,416

1,687,300

21,720,941

2,451,416

4,345,400

0.27

0.48

2.38

UnknownUnknownUnknown

State-owned legal person Domestic natural person Domestic natural person

1,040,400

2,062,600

0.23

Unknown

Others

Cai Yan ( ᇹف)

Wang Rui ( ˮြ)

1,778,700

-201,600

1,503,545

1,778,700

0.16

0.19

Unknown

Domestic natural person Domestic natural person

Shareholdings of the top 10 holders of shares not subject to trading moratoriumName of Shareholder

HKSCC (Nominees) LimitedPanda Electronics Group Limited ("PEGL") China Huarong Asset Management Co., Ltd. Nanjing Electronics Information Industrial

Corporation ("NEIIC")

Guoxin Investment Co., Ltd. Zhao Dongling ( Ⴛ؇Ꮚ) Ma Jiangfeng ( ৵Ϫࢤ)

Industrial and Commercial Bank of China -

Guotai CSI Composite Index Communication Equipment ETF Securities Investment Fund

( ʕ਷ʈਠვБٰ΅Ϟࠢʮ̡ - ਷इʕ ᗇΌܸஷڦண௪ʹ׸ۨක׳όܸᅰᗇ Վҳ༟ਿږ)

Wang Rui ( ˮြ) Cai Yan ( ᇹف)

Number of shares held not subject to trading moratorium

Class

Overseas listed foreign 241,655,470

246,269,656 shares

Class and number of shares

Number

RMB ordinary shares 4,614,186

210,661,444 RMB ordinary shares 210,661,444

64,471,891 RMB ordinary shares 64,471,891

RMB ordinary shares 22,120,611

35,888,611 Overseas listed foreign 13,768,000 shares

21,720,941 RMB ordinary shares 21,720,941

4,345,400 RMB ordinary shares 4,345,400

2,451,416 RMB ordinary shares 2,451,416

2,062,600 RMB ordinary shares 2,062,600

1,778,700 RMB ordinary shares 1,778,700

1,503,545 RMB ordinary shares 1,503,545

Description on connected relationship or party acting in concert among the aforesaid shareholders

NEIIC holds 100% equity interests of PEGL, the controlling shareholder of the Company. NEIIC holds, directly and through asset management plans, 22,120,611 A shares and 13,768,000 H shares of the Company, representing 3.93% of the total number of shares. NEIIC indirectly holds 210,661,444 A shares of the Company through PEGL, representing 23.05% of the total number of shares. In total, NEIIC holds 26.98% equity interests of the Company. CEIEC (H.K.) Limited ( ശཥϞࠢʮ̡ ), a wholly-owned subsidiary of CEC, holds 27,414,000 H shares of the Company, representing 3% of the total number of shares, which are held under the name of HKSCC (Nominees) Limited. In conclusion, China Electronics Corporation ("CEC"), the de facto controller of the Company, holds 29.98% shares of the Company through its subsidiaries. Save as the above, the Company is not aware of any connected relationship or party acting in concert among the aforesaid shareholders.

Note:

HKSCC (Nominees) Limited held 246,269,656 shares (in particular: 241,655,470 H shares, 4,614,186 A shares) of the Company on behalf of many clients, representing 26.95% of the issued share capital of the Company, including 13,768,000 H shares held by NEIIC in the Company, and 27,414,000 H shares held by CEIEC (H.K.) Limited ( ശཥϞࠢʮ̡ ), a wholly-owned subsidiary of CEC as at the end of the Reporting Period. Save as disclosed above, the Company is not aware of any individual client holding more than 5% of the issued share capital of the Company.

4.2 Diagram of the shareholding and controlling relationship between the Company and the controlling shareholder

Nanjing Electronics Information

Industrial Corporation €یԯʕཥဤ䊅ڦࢹପุණྠ

Ϟࠢʮ̡

100%

Panda Electronics Group Limited

3.93%

23.05%

Nanjing Panda Electronics

Company Limited

4.3 Diagram of shareholding and controlling relationship between the Company and its ultimate controllers

State-owned Assets Supervision and

Administration Commission

of the State Council

100%

China Electronics Corporation

100%

China Electronics Co., Ltd.

(ʕ਷ཥɿϞࠢʮ̡)

Panda Electronics Group Limited

23.05%

Najing Panda Electronics Company Limited

III. DISCUSSION AND ANALYSIS OF THE OPERATION

1 Principal operations during the reporting period

In 2020, in response to the complicated situation of significantly increasing risks and challenges in every aspect, the Company accelerated the promotion of industry transformation and upgrade, deepened the implementation of comprehensive lean management, strengthened the quality enhancement, cost deduction and efficiency improvement, focused on building its core competitiveness, advanced the high-quality and sustainable development of the Company.

1.1 Analysis of principal operations

1.1.1 Analysis of changes in related items in the income statement and cash flow statement

Unit: Yuan Currency: RMB

Amount for

Amount for	the same period
Item	the period	last year	Change
(%)
Operating income	3,952,265,022.15	4,660,047,001.92	-15.19
Operating costs	3,346,686,684.89	3,955,938,472.70	-15.40
Cost of sales	45,876,049.49	54,111,280.14	-15.22
Administrative expenses	257,745,539.77	270,036,371.18	-4.55
R&D expenses	205,817,437.26	239,196,398.72	-13.95
Financial expenses	-5,690,663.20	2,504,014.29	-327.26
Net cash flows from operating
activities	534,653,617.28	-341,233,848.13	N/A
Net cash flows from investing
activities	-212,816,988.07	-43,461,006.56	N/A
Net cash flows from financing
activities	-27,761,914.27	-43,865,208.11	N/A
Gain or loss from fair value
changes	886,749.69	469,826.49	88.74
Assets impairment losses	-13,955,982.11	-43,308,217.26	N/A
Gain from the disposal of assets	-50,820.75	383,216.04	-113.26
Non-operating income	12,947,404.25	4,932,373.77	162.50
Note:

Decrease of financial expenses: mainly due to the decrease in exchange losses during the period resulting from changes in RMB exchange rate;

Increase of net cash flows from operating activities: mainly due to cash received from sales of goods during the period;

Decrease of net cash flows from investing activities: mainly due to outstanding bank wealth management products purchased from banks;

Increase of net cash flows from financing activities: mainly due to the decrease in dividends paid on ordinary shares for the period;

Increase of gain or loss from fair value changes: mainly due to the gains on changes in fair value of financial assets for trading for the period;

Decrease of assets impairment losses: mainly due to the provision for impairment in long-term equity investments for the previous period;

Decrease of gain from the disposal of assets: mainly due to the decrease of gains from the disposal of non-current assets;

Increase of non-operating income: mainly due to the recovery of prepayment of tax for the previous period.

1.1.2 Revenue and cost

During the reporting period, the Company's operating income and operating cost decreased by 15.19% and 15.40% respectively over the previous period. The proportion of decrease in the operating income and operating cost of the Company is close. The decline in operating income and operating cost of intelligent manufacturing business and related products is larger than that of operating costs, and the gross profit margin of the related products has declined. The decline in operating income of smart city business and related products is smaller than that of operating costs, and the gross profit margin of the related products has increased slightly. The increase in operating income of electronic manufacturing services business and related products is smaller than that of operating costs, and the gross profit margin of the related products has declined slightly.

(1) Principal operations by business sector, product and geographical regions

Unit: Yuan Currency: RMB

Principal operations by business sector

Increase/decrease in operation Increase/decreaseIncrease/decrease in gross profit

income from in operation cost margin from theBy sectorOperating incomeOperating cost

Gross profit the same periodfrom the samemarginlast year period last yearsame period last year

(%)

(%)Intelligent manufacturing industry

166,203,899.56 193,355,994.69

-16.34

-73.37

-67.11

Decreased by 22.13 percentage points

Smart city industry

1,807,435,895.41 1,492,319,695.01

17.43

-14.77

-16.92 Increased by
2.13 percentage points
Electronic manufacturing 1,916,817,250.45 1,637,813,986.58 services
14.56
4.96
6.55 Decreased by
1.28 percentage pointsOthers
30,075,886.05 17,026,746.59
43.39
1.44
-39.34 Increased by

38.07 percentage points

Principal operations by products

Increase/decrease in operation Increase/decreaseIncrease/decrease in gross profit

income from in operation cost margin from theOperating incomeOperating cost

Gross profit the same periodBy sectorfrom the samemarginlast year period last yearsame period last year

(%)

(%)Industrial robots

17,896,031.00 20,466,061.86

Intelligent factories and 88,168,757.57 110,488,496.38 systems

Core components of smart manufacturing

Intelligent transportationSafe cityInformation network equipment

60,139,110.99 62,401,436.45

553,906,021.41 402,909,832.58

638,250,665.78 567,438,219.81

615,279,208.22 521,971,642.62

Electronic manufacturing 1,749,379,737.00 1,544,770,807.96 services

Modern service industry 167,437,513.45 93,043,178.62

Others

30,075,886.05 17,026,746.59

-14.36

-55.52

-45.12

Decreased by 21.67 percentage points

-25.31

-83.44

-77.75 Decreased by
32.03 percentage points
-3.76
16.63
15.16 Increased by
1.32 percentage points
27.26
7.21
3.58 Increased by
2.55 percentage points
11.09
-21.45
-20.61 Decreased by
0.95 percentage points
15.17
-22.27
-24.63 Increased by
2.66 percentage points
11.70
6.48
7.75 Decreased by
1.04 percentage points
44.43
-8.69
-10.05 Increased by
0.84 percentage point
43.39
1.44
-39.34 Increased by

38.07 percentage points

Principal operations by products

Increase/decrease in operation Increase/decreaseIncrease/decrease in gross profit

income from in operation cost margin from theBy sectorOperating incomeOperating cost

Gross profit the same periodfrom the samemarginlast year period last yearsame period last year

(%)

(%)Nanjing

3,297,358,586.67 2,854,728,362.44

13.42

-12.42

-13.09

Increased by 0.66 percentage point

Shenzhen

623,174,344.80 485,788,060.43

22.05

-25.43

-26.94 Increased by 1.61 percentage points

Principal operations by business sector, product and geographical regions:

Principal subsidiaries of the Company are all engaged in smart manufacturing, smart city, electronic manufacturing services and related industries. The operating income from smart manufacturing decreased by 73.37% over the same period of last year as a result of the decrease in operating revenue related to industrial robots, intelligent factories and system projects related business caused by the business structure adjustment and the relatively great impact of the COVID-19 pandemic. The operating income from smart city business decreased by 14.77% over the same period of last year as a result of the decrease in income from safe city and information network equipment because of the scheduled business progress being affected by the COVID-19 pandemic.

During the reporting period, sales of industrial robots in major products of the Company fell short of expectations, but the investment of materials increased and gross profit margin decreased significantly over the same period of the previous year. Due to intensified market competition, the intelligent factories and systems and related business saw its operating income decreased by 83.44% over the same period of the previous year due to the decrease in operating income related to intelligent factories and system projects related business. The operating income of the safe city business decreased by 30.74% over the same period of the previous year due to the impact of the project settlement schedule.

The principal operations of the Company were primarily distributed in Nanjing and Shenzhen. During the reporting period, the operating income of Nanjing decreased by 12.42% over the same period of last year as a result of the decrease in operating income related to intelligent factories and system projects related business; the operating income of Shenzhen decreased by 25.43% over the same period of last year due to the decrease in the number of orders for export products resulting from the impact of the pandemic overseas, shortages of key raw materials and price increasing, etc.

(2) Sales to major customers and purchases from major suppliers
During the reporting period, sales to the top five customers amounted to RMB1,635,095,500, representing 41.37% of the total sales in 2020, of which sales to connected parties amounted to RMB1,517,592,400, representing 38.40% of the total sales in 2020.
During the reporting period, the aggregate amount of purchase from the top five suppliers of the Company amounted to RMB588,466,900, accounting for 18.33% of the total amount of purchase made by the Company in 2020. There were no connected parties in the top five suppliers.
(3) Expenses
During the reporting period, the selling expenses decreased by RMB8,235,200 or 15.22%, which was mainly due to the year-on-year decrease in advertising and exhibition costs during the period as a result of the impact of the COVID-19 pandemic; the management expenses decreased by 4.55% over the same period of last year, which was mainly due to the year-on-year decrease of labor costs as a result of the deduction of part of social insurance because of COVID-19; and the finance cost decreased by 327.26% over the same period of last year, which was mainly due to the decrease in exchange losses during the period resulting from changes in RMB exchange rate.

(4)

R&D Investment
Currency: RMB
R&D expenses for the period	205,817,437.26
Capitalized R&D expenses for the period	43,050,731.22
Total R&D expenses	248,868,168.48
The percentage of total R&D expenses over
operating income (%)	6.30
The number of R&D personnel	743
The percentage of R&D personnel over total
number of staff of the Company (%)	22.88
The percentage of capitalized R&D expenses
(%)	17.30
Description:

Unit: Yuan

The Company strived to improve its independent innovation and integrated innovation capabilities, increased the investment in science and technology, the scientific and technological innovation achievements constantly emerged, the scientific research ability improved significantly, and its core competitive advantage was further strengthened. In recent years, it grasped the development opportunities of digital economy and new generation of information technology. Guided by the market, based on the three leading businesses of new smart city, smart manufacturing and electronic manufacturing services, it has accelerated the improvement of scientific and technological innovation system, promoted the transformation of scientific and technological achievements, and provided support to further improve the quality of scientific research platform construction, enhance its independent innovation ability and strengthen its core competitiveness. Moreover, the Company adheres to the combination of scientific and technological innovation and innovation of institutional mechanisms, reforms the management method of scientific and technological innovation projects, as well as emphasizes scientificity of project approval, rationality of the budget, seriousness of the implementation plan so as to maintain the effective investment in scientific research projects, and ensure that research projects are more forward-looking, closer to the market and more operational. In addition, it focused on input for and output from scientific research, paid attention to the quality and management of research results, and coordinated reporting and assesses activities for research results conducted by various subsidiaries. In 2020, the Company's eight scientific and technological achievements won the Science and Technology Awards of provincial and municipal governments, industry associations and China Electronics, including three Jiangsu Provincial Science and Technology Awards, which were the first, second and third prize, respectively; a total of 13 projects passed the corporate-level higher technical accreditation, providing strong momentum for the Company's high-quality development.

The Company strengthened in-depth cooperation with universities to promote the transformation and implementation of scientific and technological achievements with the guidance of the market. It strengthened the cultivation of long-term technical competence, increased the investment in technology research and development, promoted the adjustment of product structure and formulated the innovation synergy in the joint innovation with universities and scientific research institutes. In 2020, the Company cooperated with Southeast University in scientific research project "Key Technologies and Applications of Ultra-high Temporal-spatial Resolution Cognitive Display" and Nanjing University of Posts and Telecommunications in scientific research project "Key Technologies and Applications of 5G Heterogeneous Wireless Access Network Converged Packet Network". In the field of the relevant technology of FOS detection system, it cooperated closely with Nanjing University and Nanjing University of Aeronautics and Astronautics, and coordinated with Nanjing University of Posts and Telecommunications and Nanjing Institute of Mobile Communication and Computing Innovation of Institute of Computing Technology of Chinese Academy of Sciences to study "The Cooperative Control Equipment and Key Technologies of New Edge Network", and entered into the project technology development contract "Research and Development of Flame Retardant and Low Temperature Impact Resistant Modified Polycarbonate Materials" with Nanjing Tech University, so as to promote the deep integration of industry, university and research, make breakthroughs in key technologies, strengthen innovation guidance and accelerate the transformation and upgrading of enterprises.

The Company improved the management system and mechanism of intellectual property, and realized the standardization and systematization of the management process of intellectual property. It greatly increased the number and quality of patent applications in the fields of smart manufacturing, smart city and other industries. Moreover, it expanded and improved the patent pool of smart manufacturing and smart city, and strived to have some patents enter the fields of national and industrial basic patents, core patents, key patents and high-value patents.

The Company has 7 provincial-level R & D centers, which have closely integrated with the current industrial development direction of the Company, and have strong ability of digestion, absorption and re-innovation. While satisfying the development of the industry, it actively tracks the cutting-edge technologies in the industry and conducts technical pre-research and prediction.

(5) Cash flow

During the Reporting Period, the increase of net cash flows from operating activities is mainly due to cash received from sales of goods during the period; the decrease of net cash flows from investment activities is mainly due to the outstanding bank wealth management products purchased from banks; and the increase of net cash flows from financing activities is mainly due to the decrease in dividends paid on ordinary shares for the period.

1.2 Analysis of assets and liabilities

Unit: Yuan Currency: RMB

Change in the amountAmount at the end of the period as a

Amount at percentage the end of of the total

Amount at the end of the

Amount at at the end of the end of the period as the previous compared to period as a the amount percentage at the end of of the the previousItem

the period

assets previous periodtotal assets

periodExplanation

(%)

(%)Financial assets held for 501,356,576.18 trading

8.35 300,469,826.49

4.99

66.86 Due to the increase of the outstanding bank wealth management products at the end of the period
Notes receivable
35,394,835.82
0.59 21,780,418.49
0.36
62.51 Mainly due to the increase in sales of goods settled by bills for the period
Receivables financing
144,969,078.62
2.42 347,259,336.87
5.77
-58.25 Mainly due to the decrease in notes receivable measured at fair value with changes included in other comprehensive income
Contract assets
76,231,842.63
1.27 541,978,173.94
9.00
-85.93 Mainly due to the contract assets recognised at the beginning of the period were included in receivables during the periodOther current assets
28,763,433.11
0.48 55,089,857.84
0.92
-47.79 Mainly due to the receipt of the incremental retention tax credit refunded in the period and others under 2019 No. 39 of Ministry of Finance

Amount at percentage the end of of the total

ItemAmount at the end of the period as a

Amount at the end of the

the period

assets previous period

Change in the amount Amount at at the end of the end of the period as the previous compared to period as a the amount percentage at the end of of the the previous

total assets

periodExplanation

(%)

(%)Investment propertiesConstruction in progressIntangible assets

235,008,179.80

7,346,214.86

157,943,967.01

Other non-current assets 81,767,440.76

Short-term borrowingsAdvance receipts from customers

Taxes payableNon-current liabilities due within one year Deferred income tax liabilities

3.92 21,096,325.77

0.12 31,407,899.18

2.63 109,121,914.00

1.36 55,275,624.94

0.00

0.00 50,000,000.00

3,394,006.00

0.06 2,581,558.74

30,758,945.68

0.51 21,404,214.61

8,170,178.10

0.14 3,451,972.08

0.35 1,013.98 Mainly due to the increase in operating leased buildings during the period

0.52

-76.61 Mainly due to the current phase of construction in progress transformed into fixed assets
1.81
44.74 Mainly due to the increase in intangible assets of the internal research and development during the period
0.92
47.93 Mainly due to the increase in the project quality guarantee deposit with guarantee period over one year
0.83
-100.00 Due to the repayment of bank short-term loans during the period
0.04
31.47 Mainly due to the increase in prepayments of service charges and others
0.36
43.71 Mainly due to the refunds of incremental retention tax credits received during the period and the transferring out of input VAT
0.06
136.68 Due to the increase in lease liabilities due within one year
326,863.37
0.01
107,441.42
0.00
204.22 Mainly due to deferred income tax liabilities arising from changes in fair value of financial assets held for trading

1.3 Analysis of major invested companies

1.3.1 Analysis of major subsidiaries

In 2020, the Company further optimized its corporate structure and resource allocation, deregistered Nanjing Panda Instruments and Apparatuses Co., Ltd. ( یԯဤ䊅ᄃኜᄃڌϞࠢʮ̡ ), which had no significant impact on the overall operations and performance of the Company.

Changes in net profit of major subsidiaries are as follows:

Unit: 0'000 Currency: RMB

Net profit

Subsidiary

2020 2019 Change

(%)Nanjing Panda Electronics

Equipment Co., Ltd

("Electronics Equipment

Company")

-9,637.01

-5,784.01

N/A

Nanjing Panda Information

Industry Co., Ltd

("Information Industry

Company")

5,693.26

5,303.19 7.36%
Nanjing Panda Electronic
Manufacture Co.,
Ltd ("Electronic
Manufacture Company") Nanjing Panda
6,735.91
8,256.02 -18.41%
Communications
Technology Co., Ltd Nanjing Panda Electronic
955.07 1,035.38 -7.76%

Technology Development

Co., Ltd

-974.58

-1,656.68

N/A

Shenzhen Jinghua

Electronics Co., Ltd.

("Shenzhen Jinghua") Nanjing Panda Xinxing

6,567.53

9,490.72 -30.80%
Industrial Co., Ltd. Chengdu Panda Electronic
Technology Co., Ltd.
730.87 2,853.28
465.86 56.89%
219.15 1,201.98%

Description of changes:

Affected by the pandemic, some projects of Information Industry Company were delayed, and the operating income decreased by 13.16% year-on-year. Due to the batch delivery of major projects, its net profit increased by 7.36% year-on-year. The operating income of Electronic Manufacture Company decreased by 18.20% year-on-year and the net profit decreased by 18.41% year-on-year due to the decrease in market orders. The operating income of Shenzhen Jinghua decreased by 25.28% year-on-year and the net profit decreased by 30.80% year-on-year due to the decrease in export orders. The orders of Electronics Equipment Company declined due to the impact of the pandemic and market changes, and the operating income decreased by 72.53% year-on-year with the increase in loss. Chengdu Panda Electronic Technology Co., Ltd. officially started operation in December 2019, and its operating income and net profit increased significantly year-on-year.

1.3.2 Analysis of major invested companies

Unit: 0'000 Yuan Currency: RMB

Investment income received

Operating	Shareholding of	by the
Invested companies	income	Net profit	the Company	Company
Nanjing Ericsson Panda	1,007,168.35	24,188.55	27%	6,727.09
Communication Co., Ltd.
("ENC")

ENC was set up on 15 September 1992 with a total investment of US$40.88 million and a registered capital of US$20.9 million. ENC is held as to 27% by the Company, 51% by Ericsson (China) Company Limited, 20% by China Potevio Co., Ltd., and 2% by Yung Shing Enterprise, Hong Kong. ENC mainly engages in production of mobile telecommunication system equipment and network communications system equipment, etc. As the biggest production and supply center of Ericsson in the world, ENC is now mainly in charge of the industrialization and mass production of the products that Ericsson Company Limited developed and provides delivery and shipment to customers worldwide.

In 2020, after adjustment according to the new standards, the operating income of ENC amounted to RMB10,071,683,500, representing a year-on-year increase of 8.12%; net profit amounted to RMB241,885,500, representing a year-on-year increase of 41.66%. Reason(s) for changes in the main indicators: the increase in market orders and a year-on-year increase in revenue; the decrease in bank loans, the fluctuation of US dollar exchange rate and the decrease of financial expenses, resulting in a year-on-year increase in net profit.

1.4 2020 operating plan
The operating targets of the Company in 2021 are to achieve a operating income of RMB4,000 million and total profit of RMB120 million. Based on the overall economic development at home and abroad, the Board formulated the above operating targets by taking into full consideration the development of the industry in which the Company operates and in combination with the actual situation of the Company. In the course of actual operation, the Company will be exposed to the impact of many uncertainties. The Company will uphold a pragmatic working style, insist on making progress while maintaining stability, and strive to achieve its operating targets.
1.5 Profit distribution proposal for 2020
In 2020, the Company (as parent company) achieved a net profit of RMB90,347,533.41. Given the cash dividend of RMB15,992,174.26 distributed to shareholders in 2019 and the statutory surplus reserve of RMB9,034,753.34 appropriated in 2020, and the undistributed profit at the beginning of the period of RMB105,949,041.61 and refund of overdue dividends of RMB2,413.86 allocated in previous years, the actual distributable profit to shareholders this year amounted to RMB171,272,061.28. In accordance with the Articles of Association of the Company and the relevant requirements of Shanghai Stock Exchange, it was proposed to distribute a cash dividend of RMB0.26 (tax inclusive) for every ten shares to all the shareholders on the basis of a total share capital of 913,838,529 shares as at 31 December 2020, with the total cash dividend to be distributed amounting to RMB23,759,801.75, and the remaining part to be carried forward to next year. The Company will not transfer capital reserve into share capital. This proposal was considered and approved at the 18th meeting of the ninth session of the Board of the Company, and was agreed to submit to the annual general meeting for consideration.

The distribution of the proposed final dividend is subject to the approval by the shareholders at the forthcoming annual general meeting of the Company ("AGM") to be held on or before 30 June 2021 and is expected to be paid to the holders of H shares of the Company on or before 10 August 2021. The notice of the AGM will be dispatched to the shareholders of the Company and published on the websites of the Hong Kong Stock Exchange and the Company, respectively in due course.

1.6 Appointment and dismissal of accounting firms
The 14th meeting of the ninth session of the Board of the Company considered and approved the Resolution related to the Appointment of the Auditors for 2020, and proposed the reappointment of BDO China Shu Lun Pan Certified Public Accountants LLP as the Company's international auditor, PRC auditor and internal control auditor for 2020 and the determination of the auditor's remuneration within the limit of the total amount of RMB2,100,000. The meeting also agreed to submit the resolution for consideration and approval at the 2019 annual general meeting.
The 2019 annual general meeting of the Company considered and approved the reappointment of BDO China Shu Lun Pan Certified Public Accountants LLP as the Company's international auditor and PRC auditor as well as internal control auditor respectively for the year 2020, and authorized the Board to determine their remuneration within the limit of RMB2,100,000.
For details, please refer to the relevant announcements of the Company published in China Securities Journal, Shanghai Securities News and on the website of the Shanghai Stock Exchange on 31 March and 30 June 2020 and on the website of the Hong Kong Stock Exchange on 30 March 2020 and 30 June 2020.
1.7 Tax policies
Particulars of tax preference enjoyed by the Company and its subsidiaries as at 31 December 2020 are set out in the notes to the financial statements prepared in accordance with the Accounting Standards for Business Enterprises of China. The tax preference for subsidiaries registered in Hong Kong is subject to local laws & regulations.

1.8 Basic medical insurance for employees
The Company acted pursuant to the Provisional Regulations on Basic Medical Insurance for Employees in Nanjing Municipality and implemented a basic medical insurance for its employees since 1 January 2001. From February to June in 2020, the Company paid 4.5% of its individual employee premium for the basic medical insurance in accordance with the national employee medical insurance reduction and exemption policy in 2020; for the rest of the period, it paid 9% of the individual premium for the basic medical insurance.
1.9 Liability insurance for its directors, supervisors and senior management
During the reporting period, the Company purchased liability insurance for its Directors, supervisors and senior management in compliance with the relevant regulations of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.
1.10 Other Disclosures
(1) Liquidity of Capital

In accordance with the Accounting Standards for Business Enterprises of China, the gearing ratio of the Company (the ratio between total liabilities and total assets), current liabilities, liquidity ratio and quick ratio were 37.58%, RMB2,215,834,100, 1.90 and 1.50, respectively as at 31 December 2020 as shown in the consolidated financial statements of the Company.

Cash: as at 31 December 2020, bank balances and cash amounted to RMB1,149,052,800 as shown in the consolidated financial statements of the Company.

Loans: short-term bank loans and other loans amounted to RMB0 as at 31 December 2020 as shown in the consolidated financial statements of the Company.

According to the Announcement [2019] No. 15 of the People's Bank of China, since 20 August 2019, the People's Bank of China authorized the National Interbank Funding Center to promulgate the loan prime rate (LPR) at 9:30 a.m. on the 20th of each month (postponed in case of holidays). The loan prime rate can be available for public inspection at websites of the National Interbank Funding Center and the People's Bank of China. As of 20 December 2020, the LPR for 1 year was 3.85%, and the LPR for more than 5 years was 4.65%; as of 22 March 2021, the LPR for 1 year was 3.85%, and the LPR for more than 5 years was 4.65%.

(2) Connected transactions relating to creditor's rights and debts

Unit: Yuan Currency: RMB

Provision of funds to connected parties

Provision of funds to the Company by connected partiesConnected partiesConnected Relationship

OpeningAmount ofbalance the transaction

Closing balance

Opening Amount of Closingbalance the transaction

balance

Panda Electronics Group Limited Nanjing Panda

Controlling shareholder

6,743,156.84 157,177.22 6,900,334.06

Electronics Transportation Company China Electronics

Subsidiary owned by shareholders

74,057.25 824,401.72 898,458.97

Import and Export Subsidiary ownedCo., Ltd

by shareholders

195,539.62

- 195,539.62

Nanjing Electronics Information Industrial Corporation Shanghai Panda Huning Electronic Technology Co., Ltd.

Indirect controlling shareholder

86,700.00 -86,700.00

Subsidiary owned by shareholders

22,907.00

- 22,907.00
Nanjing Panda Technology Park Development Company Limited Liyang Panda
Subsidiary owned by shareholders
20,000.00
- 20,000.00

Cuizhuyuan Hotel Subsidiary ownedCo., Ltd Total

by shareholders

5,880.00 1,142.00 7,022.00 7,148,240.71 896,020.94 8,044,261.65

Reason of creditor's rights and debts Impact of creditor's rights and debts on the Company

(3) The Company confirms that it has complied with the disclosure requirements in accordance with Chapter 14A of Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited ("the Listing Rules") in so far as they are applicable in respect of the aforesaid connected and continuing connected transactions.

(4) The Company's Code of Corporate Governance and Model Code
During the reporting period, the Company has adopted and complied with the Corporate Governance Code as set out in Appendix 14 and the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") as set out in the Appendix 10 to the Listing Rules on the Stock Exchange of Hong Kong Limited.
(5) Audit Committee
The Company has set up an Audit Committee in compliance with the requirements of Rule 3.21 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. The Audit Committee has reviewed the interim financial report for 2020 and the audited financial report for 2020.
(6) Purchase, sale or redemption of the Company's listed securities
During the reporting period, no purchase, sale or redemption of the Company's listed securities were made by the Company.
(7) Punishment and rectification to the listed Company, its directors, supervisors, senior management, controlling shareholder, ultimate controller and acquirers
N/A

2 Reasons for suspension of listing
Applicable
✔Not Applicable
3 The circumstances and causes of the termination of listing

Applicable

✔Not Applicable

4 Analysis and explanation of the Company on the reasons and impact of the change in accounting policy and accounting estimation
The resolution on the Change in the Company's Accounting Policies and the Relevant Matters was considered and approved at the fourteenth meeting of the ninth session of the Board of the Company on 30 March 2020. In accordance with the Notice on Revising and Issuing the Format of Consolidated Financial Statements (2019 Version) ( ᗫ׵ࡌࠈΙ೯ ΥԻৌਕజڌࣸό (2019 وٙஷٝ' ) (Cai Kuai [2019] No. 16), the Accounting Standards for Business Enterprises No. 7 - Non-monetary Asset Exchange (2019 Revision) (Cai Kuai [2019] No.8) and the Accounting Standards for Business Enterprises No. 12 - Debt Restructuring (2019 Revision) (Cai Kuai [2019] No.9) issued by the Ministry of Finance, the Company made corresponding changes in accounting policies and implemented the corresponding accounting treatments at the commencement date stipulated in the above documents. The change in accounting policies was made on reasonable basis according to the relevant regulations issued by the Ministry of Finance, which was in line with the Accounting Standards for Business Enterprises and the relevant regulations. The decision-making process for this change in accounting policies is in compliance with relevant laws and regulations and the Articles of Association. The change in the accounting policies has no material impact on the current financial conditions and operating results of the Company, nor does it involve retrospective adjustments in prior years. For details of the change in accounting policies, please refer to the Announcement of Nanjing Panda on Change in Some of Accounting Policies (Lin 2020-021) published on the China Securities Journal, Shanghai Securities News and the website of the Shanghai Stock Exchange on 31 March 2020.
5 Analysis and explanation of the Company on the reasons and impact of the correction to material errors
Applicable
✔Not Applicable
6 Compared with the financial report of last year, the Company should make specific explanations for changes in the consolidation scope of the financial statements.
The Company deregistered the subsidiary of Nanjing Panda Instrument and Apparatus Co., Ltd. during the period. Before the deregistration and liquidation, the subsidiary had been consolidated in the Company's consolidated statements.

IV. FINANCIAL STATEMENTS UNDER PRC ACCOUNTING STANDARDS Consolidated Balance Sheet

31 December 2020

(Expressed in RMB, unless otherwise stated)

ASSETS

Current assets:

Cash and cash equivalents Settlement provisions Placements with banks and other financial institutions Financial assets held for trading Derivative financial assets Notes receivable Accounts receivable Receivables financing Advance to suppliers Premiums receivable Reinsurance receivable

Reinsurance contract reserve receivable Other receivables

Financial assets held under resale agreements Inventories

Contract assets Held-for-sale assets

Non-current assets due within one year Other current assets

Closing balance

1,315,726,827.97

Balanceat the end of last year

1,053,869,767.19

501,356,576.18 300,469,826.49

35,394,835.82 21,780,418.49

1,161,870,914.59 996,359,257.15

144,969,078.62 347,259,336.87

109,660,420.50 113,341,943.82

50,074,829.20 48,020,435.60

791,346,543.93 816,955,476.60

76,231,842.63 541,978,173.94

28,763,433.11 55,089,857.84

Total current assets

4,215,395,302.55

4,295,124,493.99

Balance

Closing	at the end
ASSETS	balance	of last year
Non-current assets:
Loans and advances to customers
Debenture investments
Other debenture investments
Long-term receivables
Long-term equity investments	295,182,882.84	276,388,843.98
Other equity instruments investments	4,074,939.80	4,035,539.29
Other non-current financial assets
Investment properties	235,008,179.80	21,096,325.77
Fixed assets	964,778,076.38	1,188,174,150.27
Construction in progress	7,346,214.86	31,407,899.18
Biological assets for production
Fuel assets
Right-of-use assets	13,522,566.06	12,456,669.33
Intangible assets	157,943,967.01	109,121,914.00
Development expenses
Goodwill
Long-term expenses to be amortised	10,767,289.92	11,720,569.43
Deferred income tax assets	16,160,839.46	15,345,449.29
Other non-current assets	81,767,440.76	55,275,624.94
Total non-current assets	1,786,552,396.89	1,725,022,985.48
Total assets	6,001,947,699.44	6,020,147,479.47

The accompanying notes form an integral part of these financial statements.

Head of the Accounting

Legal representative:	Chief Accountant:	Department:
Xia Dechuan	Hu Dali	Liu Xianfang
- 29 -

Liabilities and owners' equity

Current liabilities:

Closing balance

Balance at the end of last year

Short-term borrowings 50,000,000.00 Borrowings from central bank

Placements from banks and other financial institutions

Financial liabilities held for trading Derivative financial liabilitiesNote payables Accounts payable

Advance receipts from customers Contract liabilities

Financial assets sold under repurchase agreements Customer deposits and deposits from banks and other financial institutions

Security trading of agency Securities underwriting Staff salaries payable Taxes payable

Other payables

Bank charges and commissions due Reinsurers due

Liabilities held for sale

Non-current liabilities due within one year Other current liabilities

193,125,064.34 234,736,827.23

1,598,171,215.24

1,628,435,817.44

3,394,006.00 2,581,558.74

183,520,790.45 160,540,186.87

37,405,445.62 39,274,102.16

30,758,945.68 21,404,214.61

90,865,482.11 78,425,560.86

8,170,178.10 3,451,972.08

70,422,975.07 66,677,266.21

Total current liabilities

2,215,834,102.61

2,285,527,506.20

Liabilities and owners' equity

Non-current liabilities:

Insurance contract reserves Long-term payables Bonds payables

Including: Preferred shares

Perpetual bonds Lease liabilities Long-term payables

Long-term staff salaries payables Estimated liabilities

Deferred income

Deferred income tax liabilities Other non-current liabilities

Closing balance

Balance at the end of last year

8,141,702.09 8,926,407.51

15,981,789.25 19,767,429.75

15,283,181.46 17,261,888.00

326,863.37

107,441.42

Total non-current liabilities

Total liabilities

39,733,536.17 2,255,567,638.78

46,063,166.68 2,331,590,672.88

Balance

Closing	at the end
Liabilities and owners' equity	balance	of last year
Owners' equity:
Share capital	913,838,529.00	913,838,529.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve	1,470,691,800.13	1,470,691,800.13
Less: Treasury shares
Other comprehensive income	318,704.84	289,154.46
Special reserve
Surplus reserve	267,682,027.88	258,647,274.54
General preparation
Undistributed profit	856,899,656.12	804,605,994.12
Total equity attributable to the shareholders
of the parent company	3,509,430,717.97	3,448,072,752.25
Minority interests	236,949,342.69	240,484,054.34
Total owners' equity	3,746,380,060.66	3,688,556,806.59
Total liabilities and owners' equity	6,001,947,699.44	6,020,147,479.47

The accompanying notes form an integral part of these financial statements.

Head of the Accounting

Legal representative:	Chief Accountant:	Department:
Xia Dechuan	Hu Dali	Liu Xianfang
- 32 -

Parent Company Balance Sheet 31 December 2020

(Expressed in RMB, unless otherwise stated)

Balance
Closing	at the end
ASSETS	balance	of last year
Current assets:
Cash and cash equivalents	182,893,267.89	59,376,665.62
Financial assets held for trading	85,149,138.89	120,011,835.62
Derivative financial assets
Notes receivables
Accounts receivable	101,591,648.77	77,883,947.57
Financing receivables	13,415,674.00	6,000,000.00
Prepayments	4,764,922.90	1,623,591.01
Other receivables	376,035,744.51	395,937,554.47
Inventories	18,450,298.94	22,621,153.30
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets	27,552,360.61
Total current assets	782,300,695.90	711,007,108.20

ASSETS

Non-current assets:

Debenture investments Other debenture investments Long-term receivables Long-term equity investments

Other equity instruments investments Other non-current financial assets Investment properties

Fixed assets Construction in progress Biological assets for production Fuel assets

Right-of-use assets Intangible assets Development expenses Goodwill

Long-term deferred expense Deferred tax assets

Other non-current assets

Total non-current assetsClosing balance

1,728,663,326.69

Balance at the end of last year

1,710,218,840.58

4,074,939.80 4,035,539.29

373,471,501.63 159,384,219.01

70,982,173.65 302,786,588.45

3,206,506.25 2,319,713.81

11,110,934.53 12,090,267.24

3,293,294.05 3,922,128.00

2,194,802,676.60 2,194,757,296.38

Total assets

2,977,103,372.50 2,905,764,404.58

The accompanying notes form an integral part of these financial statements.

Head of the Accounting

Legal representative:	Chief Accountant:	Department:
Xia Dechuan	Hu Dali	Liu Xianfang
- 34 -

Liabilities and owners' equity

Current liabilities:

Short-term borrowings

Financial liabilities held for trading Derivative financial liabilities Note payables

Accounts payable

Advance receipts from customers Contract liabilities

Staff salaries payable Taxes payable

Other payables Liabilities held for sale

Non-current liabilities due within one year Other current liabilities

Closing balance

Balance at the end of last year

6,120,870.63 2,525,779.62

43,131,574.28 63,661,767.44

160,842.28 160,842.29

5,851,615.78 157,964.60

3,012,899.46 2,134,066.65

9,127,756.95 1,685,195.08

118,662,218.71 119,765,500.53

760,710.05

20,535.40

Total current liabilitiesNon-current liabilities:

Long-term loans Bonds payables

Including: Preferred shares

Perpetual bonds Lease liabilities Long-term payables

Long term Staff salaries payable Accrued liabilities

Deferred income

Deferred income tax liabilities Other non-current liabilities

186,828,488.14 190,111,651.61

2,149,207.40 1,961,534.25

143,519.68

96,384.83

Total non-current liabilities

2,292,727.08 2,057,919.08

Total liabilities

189,121,215.22 192,169,570.69

Balance

Closing	at the end
Liabilities and owners' equity	balance	of last year
Owners' equity:
Share capital	913,838,529.00	913,838,529.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve	1,434,870,834.28	1,434,870,834.28
Less: Treasury shares
Other comprehensive income	318,704.84	289,154.46
Special reserve
Surplus reserve	267,682,027.88	258,647,274.54
Undistributed profits	171,272,061.28	105,949,041.61
Total owners' equity	2,787,982,157.28	2,713,594,833.89
Total liabilities and owners' equity	2,977,103,372.50	2,905,764,404.58

The accompanying notes form an integral part of these financial statements.

Head of the Accounting

Legal representative:	Chief Accountant:	Department:
Xia Dechuan	Hu Dali	Liu Xianfang
- 36 -

Consolidated Income Statement The Year 2020

(Expressed in RMB, unless otherwise stated)

Items

Amount for the	Amount for the
current period	previous period
3,952,265,022.15	4,660,047,001.92
3,952,265,022.15	4,660,047,001.92
3,876,164,021.11	4,544,961,530.16
3,346,686,684.89	3,955,938,472.70
25,728,972.90	23,174,993.13
45,876,049.49	54,111,280.14
257,745,539.77	270,036,371.18
205,817,437.26	239,196,398.72
-5,690,663.20	2,504,014.29
1,620,639.74	3,631,924.64
11,743,930.16	13,040,696.48
Other gains	18,343,268.26	22,868,902.54
Investment income (losses are
represented by "-")	74,470,506.63	60,521,783.15
Including: Investment income of
associates and joint
ventures	67,620,440.86	45,436,683.21
Gains arising from
derecognition of financial
assets at amortised cost
Exchange gain (losses are represented
by "-")
Income on hedging the net exposure
(losses are represented by "-")

Interest income

1. Revenue
Including: Operating income
Interest income
Premiums earned
Fee and commission income
2. Total operating cost
Including: Operating costs

Interest expenses

Fee and commission expense Surrenders

Net payment from indemnity Net provisions for insurance contract

Insurance policy dividend paid Reinsurance cost

Tax and surcharges Selling expenses Administrative expenses R&D costs

Financial expenses Including: Interest expenseAdd:

Items

Amount for the	Amount for the
current period	previous period
Gains arising from changes in fair
value (losses are represented by "-")	886,749.69	469,826.49
Credit impairment loss (losses are
represented by "-")	-15,781,683.84	-12,648,007.98
Asset impairment loss (losses are
represented by "-")	-13,955,982.11	-43,308,217.26
Gains on disposal of assets (losses are
represented by "-")	-50,820.75	383,216.04
Operating profit (losses are
represented by "-")	140,013,038.92	143,372,974.74
12,947,404.25	4,932,373.77
990,522.96	895,287.76
151,969,920.21	147,410,060.75
34,188,719.62	33,724,437.23
117,781,200.59	113,685,623.52
117,781,200.59	113,685,623.52
77,318,175.74	52,657,894.58
40,463,024.85	61,027,728.94

Total profit (total losses are

represented by "-")

Net profit (net losses are represented by "-")

Add: Less:Non-operating income Non-operating expenses

Less:Income tax expense

(1) Classified by the business continuity
- 1. Net profit for going concern (net losses are represented by "-")
- 2. Net profit for discontinued operation (net losses are represented by "-")
(2) Classified by the attribution of the ownership
- 1. Net Profit attributable to the equity shareholders of the parent company (net losses are represented by "-")
- 2. Minority interests (net losses are represented by "-")

ItemsAmount for the current period

Amount for the previous period

Net other comprehensive income after tax Net other comprehensive income after tax attributable to owners of the parent company (1) Other comprehensive income which will not be reclassified subsequently to profit and loss

1. Changes as a result of remeasurement of defined benefit plan
2. Other comprehensive income accounted for using equity method which will not be reclassified to profit and loss
3. Changes in fair value of other equity instruments investment
4. Changes in fair value of the enterprise's own credit risk

(2)Other comprehensive income which will be reclassified to profit and loss

1. Other comprehensive income accounted for using equity method which will be reclassified to profit and loss
2. Changes in fair value of other equity instruments investment
3. Amount of financial assets reclassified to other comprehensive income
4. Provision for credit impairment of other bonds investment
5. Cash flow hedging reserve
6. Translation difference of financial statements in foreign currencies
7. Others

Net other comprehensive income after tax attributable to minority shareholders

29,550.38 97,640.59

Items

Amount for the	Amount for the
current period	previous period
7.	Total comprehensive income	117,810,750.97	113,783,264.11
Total comprehensive income attributable to
the equity holders of the parent company	77,347,726.12	52,755,535.17
Total comprehensive income attributable to
minority shareholders	40,463,024.85	61,027,728.94
8.	Earnings per share:
0.0846	0.0576
0.0846	0.0576

(1) Basic earnings per share (RMB/share)
(2) Diluted earnings per share (RMB/share)

The accompanying notes form an integral part of these financial statements.

Head of the Accounting

Legal representative:	Chief Accountant:	Department:
Xia Dechuan	Hu Dali	Liu Xianfang
- 40 -

Parent Company Income Statement The Year 2020

(Expressed in RMB, unless otherwise stated)

Amount for the	Amount for the
Items	current period	previous period
128,965,247.68	105,540,010.24
79,920,696.35	54,632,844.54
8,576,482.38	4,370,529.62
3,812,723.76	3,029,059.62
110,049,207.93	109,484,485.89
25,118,385.97	37,025,842.52
-6,635,815.49	-5,794,704.52
936,106.05	2,609,136.84
761,831.02	18,910.30
174,301,816.17	90,960,382.95
67,270,888.11	45,167,594.22
137,303.27	11,835.62
1,115,266.09	-681,092.44
-222,318.70	-13,186,312.38
-27,378.48
84,190,086.15	-20,084,323.38
6,918,802.39	2.17
724,070.41	289,192.92
90,384,818.13	-20,373,514.13
37,284.72

1. Operating income
Less: Operating costs
Business taxes and surcharge
Selling expenses
Administrative expenses
R&D costs
Financial expenses
Including: Interest expense
Interest income
Add: Other incomes
Investment income (losses are
represented by "-")
Including: Investment income of
associates and joint
ventures
Gains arising from
derecognition of financial
assets at amortised cost
Income on hedging the net exposure
(losses are represented by "-")
Income from change in fair value (losses
are represented by "-")
Credit impairment loss (losses are
represented by "-")
Assets impairment loss (losses are
represented by "-")
Gains on disposal of assets (losses are
represented by "-")
2. Operating profit (losses are represented by "-")
Add: Non-operating income Less: Non-operating expenses
3. Total profit (total losses are represented by "-")
Less: Income tax expense

Items 4.

Net profit (net losses are represented by "-")

Net other comprehensive income after tax (1)

Amount for the	Amount for the
current period	previous period
90,347,533.41	-20,373,514.13
90,347,533.41	-20,373,514.13
29,550.38	97,640.59
29,550.38	97,640.59
29,550.38	97,640.59
Other comprehensive income which will
be reclassified to profit and loss
90,377,083.79	-20,275,873.54

Other comprehensive income which will

not be reclassified subsequently to

profit and loss

1. Changes as a result of

remeasurement of defined

benefit plan

(I) Net profit for going concern (net losses are represented by "-")
(II) Net profit for discontinued operation (net losses are represented by "-")

2. Other comprehensive income accounted for using equity method which will not be reclassified to profit and loss
3. Changes in fair value of other equity instruments investment
4. Changes in fair value of the enterprise's own credit risk
(2)
1. Other comprehensive income accounted for using equity method which will be reclassified to profit and loss
2. Changes in fair value of other debt investment
3. Amount of financial assets reclassified to other comprehensive income
4. Provision for credit impairment of other debt investment
5. Cash flow hedging reserve
6. Translation difference of financial statements in foreign currencies
7. Others

Total comprehensive income

The accompanying notes form an integral part of these financial statements.

Head of the Accounting

Legal representative:	Chief Accountant:	Department:
Xia Dechuan	Hu Dali	Liu Xianfang
- 42 -

Consolidated Cash Flow Statement The Year 2020

(Expressed in RMB, unless otherwise stated)

Amount for the	Amount for the
Items	current period	previous period
4,652,591,328.68	4,465,987,746.96
83,772,022.96	77,602,619.72
229,732,942.73	193,588,491.67
4,966,096,294.37	4,737,178,858.35
3,421,853,774.82	3,902,192,914.30

Cash flows from operating activities Cash received from the sale of goods and rendering of services

Net increase in deposits and placements from financial institutions

Net increase in borrowings due to central bank Net increase in loans from banks and other financial institutions

Cash received from premiums of original insurance contract

Net amount of reinsurance business

Net increase in deposits of the insured and investment

Cash received from interests, fees and commissions

Net increase in placements from banks and other financial institutions

Net increase in repurchasing

Net cash received from securities brokerage Refunds of taxes

Cash received relating to other operating activities

Sub-total of cash inflows from operating activities

Cash paid on purchase of goods and services received

Net increase in loans and advances

Net increase in deposits in the central bank and other financial institutions

Cash paid for claim settlements on original insurance contract

Net increase in placements with banks and other financial institutions

Cash paid for interests, fees and commissions

Amount for the	Amount for the
Items	current period	previous period
Cash paid for policy dividends
Cash paid to and on behalf of employees	579,105,447.82	554,872,811.94
Cash paid for all types of taxes	157,611,180.50	333,710,832.18
Cash paid relating to other operating activities	272,872,273.95	287,636,148.06
Sub-total of cash outflows from operating
activities	4,431,442,677.09	5,078,412,706.48
Net cash flows generated from operating
activities	534,653,617.28	-341,233,848.13
5,465,659.67
57,290,700.54	84,558,902.54
599,039.29	3,596,859.22
309,600.00	5,465,659.67
1,246,030,000.00	1,656,419,000.00
1,304,229,339.83	1,750,040,421.43
71,016,327.90	197,082,427.99
1,446,030,000.00	1,596,419,000.00
1,517,046,327.90	1,793,501,427.99
-212,816,988.07	-43,461,006.56

Cash flows from investing activities Cash received from return on investments Cash received from income from investments Net cash received from the disposal of fixed assets, intangible assets and other long-term assets

Net cash received from disposal of subsidiaries and other operating entities

Cash received relating to other investing activities

Sub-total of cash inflows from investing activities

Cash paid on purchase of fixed assets, intangible assets and other long-term assets Cash paid for investments

Net increase in secured loans

Net cash paid on acquisition of subsidiaries and other operating entities

Cash paid relating to other investing activities Sub-total of cash outflows from investing activities

Net cash flows generated from investing activities

Items

3. Net cash flows generated from financing activities
Cash received from investment
Including: Cash received by subsidiaries from
minority shareholders' investment
Amount for the current period
Amount for the previous period
Cash received from borrowings 95,000,000.00
Cash received relating to other financing
activities
Sub-total of cash inflows from financing activities
Cash paid on repayment of borrowings Cash paid on distribution of dividends or profits, or interest expenses
Including: bonus and profit paid to minority shareholders by subsidiaries
Cash paid relating to other financing activities Sub-total of cash outflows from financing activities
Net cash flows generated from financing activities
85,148,311.98 124,394,222.30
85,148,311.98 219,394,222.30
50,000,000.00 140,000,000.00
60,261,138.90 118,517,590.98
43,586,256.30 42,117,860.74
2,649,087.35 4,741,839.43
112,910,226.25 263,259,430.41
- -27,761,914.27 -43,865,208.11
4. Effect of foreign exchange rate changes on cash and cash equivalents
- -8,163,284.59 -412,752.77
5. Net increase in cash and cash equivalents
Add: balance of cash and cash equivalents at
the beginning of the year
- 285,911,430.35 -428,972,815.57
- 863,141,377.23 1,292,114,192.80
6. Balance of cash and cash equivalents at the end of the year

1,149,052,807.58

863,141,377.23

The accompanying notes form an integral part of these financial statements.

Head of the Accounting

Legal representative:	Chief Accountant:	Department:
Xia Dechuan	Hu Dali	Liu Xianfang
- 45 -

Parent Company Cash Flow Statement The Year 2020

(Expressed in RMB, unless otherwise stated)

Amount for the	Amount for the
Items	current period	previous period
100,186,576.91	79,885,210.37
35,055,477.53
226,252,606.02	337,650,954.61
361,494,660.46	417,536,164.98
49,342,382.92	40,763,889.86
86,613,661.79	78,093,081.74
7,971,589.61	185,314,721.55
258,486,455.74	501,692,238.90
402,414,090.06	805,863,932.05
-40,919,429.60	-388,327,767.07
5,465,659.67
155,966,749.60	115,501,039.80
39,280.25
505,000,000.00	1,160,000,000.00
661,006,029.85	1,280,966,699.47
12,134,652.21	29,098,547.65

I. Cash flows from operating activities
Cash received from the sale of goods and
rendering of services
Refunds of taxes
Cash received received to other operating
activities
Sub-total of cash inflows from operating
activities
Cash paid on purchase of goods and services
received
Cash paid to and on behalf of employees
Cash paid for all types of taxes
Cash paid relating to other operating activities
Sub-total of cash outflows from operating
activities
Net cash flows generated from operating
activities
2. Cash flows from investing activities
Cash received from disposal and returns of
investments
Cash received from return on investments
Net cash received from the disposal of fixed
assets, intangible assets and other long-term
assets
Net cash received from disposal of subsidiaries
and other operating entities
Cash received relating to other investing
activities
Sub-total of cash inflows from investing
activities
Cash paid on purchase of fixed assets,
intangible assets and other long-term assets
Cash paid for investments
Net cash paid on acquisition of subsidiaries
and other operating entities

ItemsAmount for the current period

Amount for the previous periodCash paid relating to other investing activities Sub-total of cash outflows from investing activities

Net cash flows generated from operating activities

3. Cash flows from financing activities Cash received from investment
Cash received from borrowings
Cash received relating to other financing activities Sub-total of cash inflows from financing activities Cash paid on repayment of borrowings
Cash paid on distribution of dividends or profits, or interests expenses
Cash paid on other financing activities
Sub-total of cash outflows from financing activities Net cash flows from financing activities
470,000,000.00 970,000,000.00
482,134,652.21 999,098,547.65
178,871,377.64 281,868,151.82
15,992,174.26 73,107,082.32
15,992,174.26 73,107,082.32
-15,992,174.26
-73,107,082.32
4. Effect of fluctuations in exchange rates on cash and cash equivalents
-363.44
300.14
5. Net increase in cash and cash equivalents
Add: balance of cash and cash equivalents at the beginning of the period
121,959,410.34 -179,566,397.43
56,919,306.88 236,485,704.31
6. Balance of cash and cash equivalents at the end of the period

178,878,717.22 56,919,306.88

The accompanying notes form an integral part of these financial statements.

Legal representative:

Xia Dechuan

Head of theChief Accountant: Accounting Department:

Hu Dali Liu Xianfang

Totalowners'

equityMinority interests

240,484,054.34 3,688,556,806.59
240,484,054.34 3,688,556,806.59

Subtotal

3,448,072,752.25

61,357,965.72 -3,534,711.65 57,823,254.07

77,347,726.12 40,463,024.85 117,810,750.97

Undistributed profit

804,605,994.12

52,293,662.00 77,318,175.74

General riskreserveSurplusreserve

258,647,274.54

9,034,753.34

Currentperiod

ConsolidatedStatementofchangesinshareholders'equity

Equityattributabletotheownersofparentcompany

Other

Less: comprehensive

Capitalreserve treasuryshares income Specialreserve

289,154.46

29,550.38 29,550.38

1,470,691,800.13

Others

TheYear2020

( E x p r e s s e d in R M B , u n le s s o th e r w is e s ta te d )

Otherequityinstrument

PerpetualbondsPreferencesharesSharecapital

ItemsI. Balanceattheendofprioryear 913,838,529.00

Add:Changesinaccountingpolicies

Errorcorrectionofpreviousperiod

Business combination involving entities

undercommoncontrol

Others

II. Balanceatthebeginningofcurrentyear 913,838,529.00

III. Changesofcurrentyear(decreasesare representedby"-")

(I) Totalcomprehensiveincome
(II) Sharecapitalcontributedorwithdrew byowners
- 1. Sharecapitalcontributedbyowners
- 2. Capitalcontributedbyholdersof otherequityinstruments
- 3. Amountofshare-basedpayment includedinowner'sequity
- 4. Others

(III) Profitdistribution 9,034,753.34 -25,024,513.74 -15,989,760.40 -43,997,736.50 -59,987,496.90

-43,997,736.50 -59,989,910.76 2,413.86

-15,992,174.26 2,413.86

9,034,753.34 -9,034,753.34

Appropriationofsurplusreserve

2. Appropriationofgeneralriskreserve
3. Appropriationofprofittoowners
(orshareholders) -15,992,174.26
2,413.86
4. Others

Totalowners'

equityMinority interestsSubtotalUndistributed profit

General riskreserveSurplusreserveCurrentperiod

Equityattributabletotheownersofparentcompany

Other

Less: comprehensive

Capitalreserve treasuryshares income Specialreserve

10,600.00 10,600.00

3,746,380,060.66

236,949,342.69

3,509,430,717.97

856,899,656.12

267,682,027.88

H e a d o f th e A c c o u n tin g D e p a rtm e n t:

LiuXianfang

318,704.84

1,470,691,800.13

OthersOtherequityinstrument

PerpetualbondsPreferencesharesSharecapital

913,838,529.00

(IV) Internalcarry-overwithinequity

1. Transfer of capital reserve to capital
(orsharecapital)
2. Transferofsurplusreservetocapital
(orsharecapital)
3. Surplusreservetocoverlosses
4. Changeindefinedbenefitplan carriedovertoretainedearnings
5. Othercomprehensiveincomecarried overtoretainedearnings
6. Others

(V) Specialreserve
- 1. Appropriationforthecurrentperiod
- 2. Applicationforthecurrentperiod
(VI) Others

BalanceattheendofcurrentperiodItems

IV.

The accompanying notes form an integral part of these financial statements.

C h ie f A c c o u n ta n t:

HuDali

L e g a l r e p r e s e n ta tiv e :

XiaDechuan

Totalowners'

equityMinority interests

223,454,061.90 3,691,878,361.30
223,454,061.90 3,691,878,361.30

-3,321,554.71 113,783,264.11

17,029,992.44 61,027,728.94

-43,997,736.50 -117,104,818.82
-43,997,736.50 -117,104,818.82

Subtotal 3,468,424,299.40

3,468,424,299.40

-20,351,547.15 52,755,535.17

-73,107,082.32

Undistributed profit 825,055,181.86

825,055,181.86

-20,449,187.74 52,657,894.58

-73,107,082.32

General riskreserve

Surplusreserve 258,647,274.54

258,647,274.54

Precedingperiod

Equityattributabletotheownersofparentcompany

Other

Less: comprehensive

treasuryshares income Specialreserve

191,513.87

97,640.59 97,640.59

Capitalreserve 1,470,691,800.13

1,470,691,800.13

OthersOtherequityinstrument

PerpetualbondsPreferencesharesSharecapital

Items

I. Balanceattheendofprioryear 913,838,529.00 Add:Changesinaccountingpolicies
Errorcorrectionofpreviousperiod Businesscombinationinvolvingentitiesunder commoncontrol
Others
II. Balanceatthebeginningofcurrentyear 913,838,529.00
III. Changesofcurrentyear(decreasesare representedby"-")
- (I) Totalcomprehensiveincome
- (II) Sharecapitalcontributedorwithdrew byowners
  - 1. Sharecapitalcontributedby shareholders
  - 2. Capital contributed by holders of other equityinstruments
  - 3. Amountofshare-basedpayment includedinowner'sequity
  - 4. Others
- (III) Profitdistribution
  1. Appropriationofsurplusreserve
  - 2. Appropriation of general risk reserve
  - 3. Appropriationofprofittoowners
    (orshareholders)
  - 4. Others

Totalowners'

equity

3,688,556,806.59

Minority interests

240,484,054.34

Subtotal

3,448,072,752.25

Undistributed profit

804,605,994.12

General riskreserve

H e a d o f th e A c c o u n tin g D e p a rtm e n t:

LiuXianfang

Surplusreserve

258,647,274.54

Precedingperiod

Equityattributabletotheownersofparentcompany

Other

Less: comprehensive

treasuryshares income Specialreserve

289,154.46

Capitalreserve

1,470,691,800.13

OthersOtherequityinstrument

PerpetualbondsPreferencesharesSharecapital

913,838,529.00

(IV) Internalcarry-overwithinequity
- 1. Transferofcapitalreservetocapital(or sharecapital)
- 2. Transferofsurplusreservetocapital(or sharecapital)
- 3. Surplusreservetocoverlosses
- 4. Change in defined benefit plan carried overtoretainedearnings
- 5. Othercomprehensiveincomecarried overtoretainedearnings
- 6. Others
(V) Specialreserve
- 1. Appropriationforthecurrentperiod
- 2. Applicationforthecurrentperiod
(VI) Others

Balanceattheendofcurrentyear

Items

IV.

The accompanying notes form an integral part of these financial statements.

C h ie f A c c o u n ta n t:

HuDali

L e g a l R e p r e s e n ta tiv e :

XiaDechuan

Total owners'equity

Undistributed profit

105,949,041.61 2,713,594,833.89

65,323,019.67 74,387,323.39

90,347,533.41 90,377,083.79

Surplusreserve 258,647,274.54

258,647,274.54

9,034,753.34

9,034,753.34 -25,024,513.74 -15,989,760.40 9,034,753.34 -9,034,753.34

SpecialreserveOther comprehensive

income

289,154.46

29,550.38 29,550.38

Currentperiod

Less: treasuryshares

Capitalreserve 1,434,870,834.28

1,434,870,834.28

ParentCompanyStatementofchangesinshareholders'equity

Others

OtherequityinstrumentPerpetualbonds

TheYear2020

( E x p r e s s e d in R M B , u n le s s o th e r w is e s ta te d )

Preference shares

Sharecapital 913,838,529.00

913,838,529.00

Items

I. Balanceattheendofprioryear
Add:Changesinaccountingpolicies
Errorcorrectionofpreviousperiod
Others
II. Balanceatthebeginningofcurrentyear
III. Changesofcurrentyear
(decreasesarerepresentedby"-")
(I)Totalcomprehensiveincome (II)Sharecapitalcontributedorwithdrewbyowners
- 1. Sharecapitalcontributedbyowners
- 2. Capitalcontributedbyholdersofotherequity instruments
- 3. Amount of share-based payment included in owner's equity
- 4. Others
(III) Profitdistribution

1. Appropriationofsurplusreserve

2. Appropriationtoowners(orshareholders) -15,992,174.26 -15,992,174.26

2,413.86

3. Others

2,787,982,157.28

171,272,061.28

Surplusreserve

267,682,027.88

Specialreserve

H e a d o f th e A c c o u n tin g D e p a rtm e n t:

LiuXianfang

318,704.84

Currentperiod

Capitalreserve

1,434,870,834.28

Others

OtherequityinstrumentPerpetualbondsSharecapital

913,838,529.00

(IV) Internalcarry-overwithinequity

1. Transferofcapitalreservetocapital(orshare capital)
2. Transferofsurplusreserveto(orsharecapital)
3. Surplusreservetocoverlosses
4. Changeindefinedbenefitplancarriedoverto retainedearnings
5. Othercomprehensiveincomecarriedoverto retainedearnings
6. Others

(V) Specialreserve
- 1. Appropriationforthecurrentperiod
- 2. Applicationforthecurrentperiod
(VI) Others

Balanceattheendofcurrentperiod

The accompanying notes form an integral part of these financial statements.

C h ie f A c c o u n ta n t:

HuDali

L e g a l R e p r e s e n ta tiv e :

XiaDechuan

Items

IV.

199,429,638.06 2,806,977,789.75

-93,480,596.45 -93,382,955.86

-20,373,514.13 -20,275,873.54

-73,107,082.32 -73,107,082.32

Surplusreserve 258,647,274.54

258,647,274.54

Other comprehensive

income

191,513.87

97,640.59 97,640.59

Capitalreserve 1,434,870,834.28

1,434,870,834.28

Sharecapital 913,838,529.00

913,838,529.00

I. Balanceattheendofprioryear
Add:Changesinaccountingpolicies
Errorcorrectionofpreviousperiod
Others
II. Balanceatthebeginningofcurrentyear
III. Changesofcurrentyear
(decreasesarerepresentedby"-")
(I) Totalcomprehensiveincome
- (II) Sharecapitalcontributedorwithdrewbyowners
  - 1. Sharecapitalcontributedbyowners
  - 2. Capitalcontributedbyholdersof otherequityinstruments
  - 3. Amount of share-based payment included in owner'sequity
  - 4. Others
- (III) Profitdistribution
  - 1. Appropriationofsurplusreserve
  - 2. Appropriation to owners (or shareholders)
  - 3. Others
- (IV) Internalcarry-overwithinequity
  - 1. Transferofcapitalreservetocapital(orshare capital)
  - 2. Transferofsurplusreservetocapital(orshare capital)
  - 3. Surplusreservetocoverlosses

2,713,594,833.89

105,949,041.61

Surplusreserve

258,647,274.54

H e a d o f th e A c c o u n tin g D e p a rtm e n t:

LiuXianfang

289,154.46

Capitalreserve

1,434,870,834.28

C h ie f A c c o u n ta n t:

HuDali

Sharecapital

913,838,529.00

4. Changeindefinedbenefitplancarriedoverto retainedearnings
5. Othercomprehensiveincomecarriedoverto retainedearnings
6. Others

(V) Specialreserve

1. Appropriationforthecurrentperiod
2. Applicationforthecurrentperiod

(VI) Others

Balanceattheendofcurrentyear

L e g a l R e p r e s e n ta tiv e :

XiaDechuan

IV.

NOTES

(1) PREPARATION OF BASIS
Based on going concern and actual transactions and events, the Company prepared financial statements in accordance with the basic and specific standards of the Accounting Standards for Business Enterprises, the Application Guidance for Accounting Standard for Business Enterprises, interpretations of the Accounting Standards for Business Enterprises and other relevant regulations issued by the Ministry of Finance (hereinafter collectively referred to as "CAS"), and the disclosure requirements in the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public No.15-General Provisions on Financial Reporting issued by the China Securities Regulatory Commission.
(2) GOING CONCERN
For the reporting period and at least 12 months since the end of the reporting period and there is no significant risk affecting its ability to continue as a going concern.
(3) SEGMENT REPORTS
The company established 4 parts of segment reports on the basis of the internal organisational structure, management requirement, and internal report system. They are intelligent city industry, electronic manufacturing service, intelligent manufacturing industry and others. Each segment provides different products and service, or activities from different areas. Due to the different demands of each segment applying for different technology and marketing strategy, the company's management control the different segments of business activities separately, and evaluate the operating results on a regular basis in order to allocate resources and evaluate its performance.
The inter-segment transfer price is determined based on the actual transaction price, and the expenses indirectly attributable to each segment are distributed among the segments according to the corresponding proportion. The assets are allocated based on the operations of the segments and the location of the assets. Segment liabilities include liabilities attributable to the segment from the segment's operating activities. If the liabilities related to the liabilities shared by the multiple operating segments are allocated to these operating segments, the shared liabilities are also allocated to these operating segments.
Non-current assets are classified according to the assets in which they are located, excluding available-for-sale financial assets and deferred income tax assets. The non-current assets of the Company are all within the China Mainland.

Annual information by December 31st, 2020 and December 31st, 2019 are separately provided as follows:

Year by December 31st, 2020

ItemElectronicIntelligentIntelligent city industry

manufacturing manufacturing

Unit: RMB,Yuan

UndistributedEliminationsserviceindustryOthersamount among segmentsTotal

Trade income from third party Trade income between segments Investment income from joint ventures and associated

Impairment of assets Credit impairment losses

1,710,930,837.36 1,913,352,347.06 267,511,189.90 55,847,672.35

117,700,270.39

170,823,514.50 32,493,187.94 17,191,159.49 -338,208,132.32

-809,904.34 1,833,021.76

349,552.75 4,957,382.85 -34,138.85

9,649,835.29 158,668.31 13,955,982.11

12,246,875.82

Depreciation and amortization expense 14,590,434.78

10,936,185.53 40,669,950.82

Total profit (Total loss) 117,562,572.79 179,130,740.17 Income tax expenses 2,448,532.92 31,124,190.96

Net profit (Net loss) Total assets

Total liabilities

Other non-cash expense other than depreciation and amortization expenses

Long-term investment in joint ventures and associated enterprises Increased amount in other non-current

1,468,096.39 267,828.72 15,781,683.84

24,855,248.11 21,643,846.67 112,695,665.91

-106,376,527.53 -32,272,443.56 105,212,056.54 -111,286,478.20 151,969,920.21

-697,304.89

1,998,750.83

115,114,039.87 148,006,549.21 -105,679,222.64 -34,271,194.39 105,174,771.82 -110,563,743.28 117,781,200.59 2,138,737,550.58 1,890,716,726.63 681,203,059.52 699,160,455.20 2,962,697,337.03 -2,370,567,429.52 6,001,947,699.44 1,234,543,060.64 459,885,351.28 134,799,025.68 2,255,567,638.78

977,715,870.13

2,305,102.51

assets other than long-term investment 33,874,867.58 9,119,006.44

4,622,975.48

3,952,265,022.15

67,270,888.11 67,620,440.86

37,284.72

-722,734.92 34,188,719.62

134,713,269.28 -686,088,938.23

292,877,780.33 295,182,882.84

24,119,286.88

-3,779,361.98

-20,488,869.53

-109,556.84 42,735,372.55

Year by December 31st, 2019

Unit: RMB,Yuan

ItemIntelligent city industryElectronic manufacturing serviceIntelligent manufacturing industry

UndistributedEliminationsOthersamount among segmentsTotalTrade income from third party Trade income between segments Investment income from joint ventures and associated

Impairment of assets Credit impairment losses

2,123,817,689.13 1,834,878,039.13 633,226,163.33 68,125,110.33

92,051,140.67 109,696,224.86
269,088.99
3,014,486.70 7,930,336.78

7,469,159.94

-745,430.53

Depreciation and amortization expense 10,162,720.44

Total profit (Total loss) Income tax expenses Net profit (Net loss) Total assets

Total liabilities

Other non-cash expense other than depreciation and amortization expenses

Long-term investment in joint ventures and associated enterprises Increased amount in other non-current

8,648,156.61 33,961,933.05
- 57,790,790.01 35,685,251.22
- 18,594,742.05 576,333.74
1,976,972.01
109,404,755.82 183,598,457.87 -57,772,206.69
9,282,757.57 25,486,039.35
100,121,998.25 158,112,418.52 -57,772,206.69 -41,770,183.53

2,042,479,130.13 1,914,349,879.63 939,615,850.27 730,066,656.99 2,888,691,499.35 -2,495,055,536.90 6,020,147,479.47 1,258,239,789.85 579,918,647.33 148,236,045.71 2,331,590,672.88

973,719,842.98

1,955,549.76

assets other than long-term investment 29,372,721.67

45,167,594.22 45,436,683.21

4,660,047,001.92

-295,223,406.76

13,192,317.99 43,308,217.26

3,926,776.99 29,738,001.33 -42,344,914.21 -574,730.68

20,529.57 12,648,007.98

12,262,229.18

11,181,951.98 -56,657,984.02 147,410,060.75

-469,629.01 33,724,437.23

11,181,951.98 -56,188,355.01 113,685,623.52

149,921,993.40 -778,445,646.39

274,433,294.22 276,388,843.98

61,707,295.19

114,608,416.46

-12,124,528.49 -24,997,221.14

-69,582.16 94,703,458.45

2,813,347.16 171,380,030.85

(4) Accounts receivable

1. Disclosure of accounts receivable by aging
2. Disclosure of accounts receivable by allotment method of bed debt


Account age	Closing balance	end of last year
Within one year (includes 1 year)	986,730,944.25	888,517,226.88
including: 0-6 months	852,957,752.19	831,972,710.15
7-12 months	133,773,192.06	56,544,516.73
1 to 2 years	129,760,955.02	71,782,021.94
2 to 3 years	60,317,987.51	37,383,185.91
3 to 4 years	13,312,642.33	14,855,019.84
4 to 5years	8,466,952.45	21,275,141.86
5 years above	20,343,866.35	8,724,891.67
Subtotal	1,218,933,347.91	1,042,537,488.10
Less: bad debt provision	57,062,433.32	46,178,230.95
Total	1,161,870,914.59	996,359,257.15

Balance at the

Type

Accounts receivable with individual accrual Accounts receivable with accruing bad debt provision in credit risk characteristic portfolio

Including: aging portfolio

Carrying amount Bad debt provisionClosing balance

Total

Other portfolio

1,156,686,846.71 94.89

1,218,933,347.91 100.00

649,077,446.89 53.25

507,609,399.82 41.64

62,246,501.20 5.11

Amount Percentage	Amount	Percentage	Book value
(%)	(%)
31,024,845.33	49.84	31,221,655.87
26,037,587.99	2.25	1,130,649,258.72
25,874,714.37	3.99	623,202,732.52
162,873.62	0.03	507,446,526.20
57,062,433.32	1,161,870,914.59

Balance at the end of last yearCarrying amount

Bad debt provisionType

AmountPercentageAmountPercentageBook value

(%)

(%)Accounts receivable with individual accrual Accounts receivable with accruing bad debt provision in credit risk characteristic portfolio

Including: aging portfolio

85,612,136.43

Other portfolio

956,925,351.67 520,032,228.45 436,893,123.22

8.21

26,441,239.05

91.79 49.88 41.91

30.88 59,170,897.38

19,736,991.90 19,479,475.27

257,516.63

2.06 937,188,359.77

3.75 500,552,753.18

0.06 436,635,606.59

Total

1,042,537,488.10

100.00 46,178,230.95 996,359,257.15

Provision, transfer and recovery of bad debts in the period

TypeMovement

Balance at the end of last year

Accrual of bad debtsReturn or recovery

withdrawingClosing balance

Accounts receivable with individual accrual Accounts receivable with accruing bad debt provision in credit risk characteristic portfolio

Including: aging portfolio

Other portfolio

26,441,239.05 11,609,438.34 6,421,843.06

603,989.00 31,024,845.33

19,736,991.90 16,441,930.35 7,932,981.58 2,208,352.68 26,037,587.99
19,479,475.27 16,441,930.35 7,932,981.58 2,113,709.67 25,874,714.37

257,516.63

94,643.01

162,873.62

Total

46,178,230.95

28,051,368.69 14,354,824.64

2,812,341.68 57,062,433.32

The accounts receivable that have been written-off
Written-off
Item	amount
Accounts receivable written-off	2,812,341.68

5. At the end of the accounting period, the company had no derecognized accounts receivable due to the transfer of financial assets
6. At the end of the accounting period, the company had no transferred receivables or continued to be involved in the amount of assets and liabilities

7. Overdue receivables at the end of accounting period

Item	Closing balance
Amount not overdue or impaired	852,957,752.19
Overdue but not impaired amount - Within 3 months	92,947,626.18
Overdue but not impaired amount - 3 months above	215,965,536.22
Total	1,161,870,914.59

The largest credit risk of The Company's accounts receivable is the carrying value of accounts receivable in the consolidated financial statement. Due to the top five debtors of accounts receivable occupying 41.47% (2019, 44.30%) of accounts receivable in consolidated financial statement for the year ended 31 December 2020, the Company does not suffer from material and centralised credit risk.

(5) CONTRACT ASSETS 1. Details of contract assets

Closing Balance

Impairment

Item

Book balanceprovisionBook value

Intelligent traffic Intelligent construction Intelligent factory

59,360,246.98 59,360,246.98 14,904,332.70 14,904,332.70

2,314,427.00

347,164.05 1,967,262.95
Information network equipment and consumer electronics
Total
76,579,006.68
347,164.05 76,231,842.63

Balance at the end of last year

Impairment

Item

Book balance provision Book value

Intelligent traffic	90,869,620.80	90,869,620.80
Intelligent construction	80,743,660.20	538,933.18 80,204,727.02
Intelligent factory	371,864,195.95	2,150,369.83 369,713,826.12
Information network equipment and
consumer electronic products	1,190,000.00	1,190,000.00
Total	544,667,476.95

2,689,303.01

541,978,173.94

Amount and reasons for significant changes in book value during the reporting period

Changed
Item	amount	Reasons of changes
Intelligent traffic	-31,509,373.82	Transfer of contract assets
recognized at the beginning of
the year into account receivables
Intelligent	-65,839,327.50	Transfer of contract assets
construction	recognized at the beginning of
the year into account receivables
Intelligent factory	-369,549,768.95	Transfer of contract assets
recognized at the beginning of
the year into account receivables
Information	-1,190,000.00	Transfer of contract assets
network	recognized at the beginning of
equipment	the year into account receivables
and consumer
electronic
products
Total	-468,088,470.27
- 62 -

Provision for impairment of contract assets in the current period

Balance at the end of last yearProvision in current period

Reversal Written-offItemin current periodin current period

Closing balance reasons

Intelligent factoryIntelligent construction

2,150,369.83

538,933.18

1,803,205.78

538,933.18

347,164.05 transferred into receivables transferred into receivablesTotal

2,689,303.01

2,342,138.96

347,164.05

Note: The reason for the reversal of impairment is that the contract assets recognized at the beginning of the year were transferred into receivables.

(6)OTHER EQUITY INSTRUMENT INVESTMENT

1. Details of investment in other equity instrumentItem
Closing balance
Balance at the end of last year
Jiangsu urban rail transit research and Design Institute Co., Ltd
4,074,939.80 4,035,539.29
Total
4,074,939.80 4,035,539.29
2. Investment in non-tradable equity instruments

ItemReasons of designated to Amount be measured transferred at fair value

Dividend income recognized in the current period

from other with changes comprehensive included income to in otherReasons for transfer of other comprehensive

Accumulated profitsAccumulated loss

retained comprehensive income into retainedearnings incomeearnings

Jiangsu urban rail transit research and Design Institute Co., Ltd

424,939.80

Investment in non-tradable equity instruments

(7) RIGHT OF USE ASSETS

Item

BuildingsMachinery equipmentTotal

1. Original book value (1)Opening balance (2)Increased amount in current period
- - New lease
- - Increase by merge
- - Revaluation adjustment
(3)Decreased amount in current period - Transferred to fix assets - Disposal
(4)Closing balance
11,082,420.71
- 6,641,154.01 17,723,574.72
  8,107,334.10 8,107,334.10 8,107,334.10 8,107,334.10
  19,189,754.81
- 6,641,154.01 25,830,908.82
2. Accumulated Depreciation (1)Opening balance (2)Increased amount in current period - Accrued (3)Decreased amount in current period
- - Transferred to fixed assets
- - Disposal
(4)Closing balance
3. Impairment provision (1)Opening balance (2)Increased amount in current period - Accrued (3)Decreased amount in current period - Transferred to fixed assets
(4)Closing balance
4. Book value
(1)Book value at the end of the period
(2)Book value at the beginning of the period

1,072,492.33 4,594,696.42 4,594,696.42

5,667,188.75

4,194,413.06 5,266,905.39
2,446,740.95 7,041,437.37
2,446,740.95 7,041,437.37
6,641,154.01 12,308,342.76
13,522,566.06 13,522,566.06
10,009,928.38
2,446,740.95 12,456,669.33

(8) ACCOUNTS PAYABLE

1.
Balance at
the end of
Item	Closing balance	last year
Within 1 year (Including 1 year)	1,416,898,524.95	1,354,289,654.38
1 to 2 years (Including 2 years)	91,482,176.96	186,252,779.24
2 to 3 years (Including 3years)	46,089,316.15	45,350,521.82
3 years above	43,701,197.18	42,542,862.00
Total	1,598,171,215.24	1,628,435,817.44
2.	Classified by nature
Balance at
the end of
Item	Closing balance	last year
Payment for goods	1,145,628,682.72	1,172,838,445.91
Project funds	404,152,080.28	412,609,654.32
Processing and maintenance funds	29,187,350.64	23,100,766.77
Logistics warehousing funds	4,586,753.71	4,536,666.39
Others	14,616,347.89	15,350,284.05
Total	1,598,171,215.24	1,628,435,817.44

Accounts payable

(9) CONTRACT LIABILITIES

1. Details of contract liabilities
2. Amount and reasons for significant changes in book value during the reporting period


Balance at
the end of
Item	Closing balance	last year
Intelligent traffic	111,851,296.03	81,760,438.00
Intelligent construction	28,443,083.36	46,786,393.06
Electronic manufacturing service	19,494,385.79	22,275,571.73
Information network equipment and
consumer electronics	12,081,785.40	1,544,872.05
Intelligent factory	11,650,239.87	8,172,912.03
Total	183,520,790.45	160,540,186.87

Changing
Item	amount	Reason of changes
Intelligent traffic	30,090,858.03	Receipt of contract advance
payment
Intelligent	-18,343,309.70	Contract liabilities at the beginning
construction	were recognized as revenue in
current period
Electronic	-2,781,185.94	Contract liabilities at the beginning
manufacturing	were recognized as revenue in
service	current period
Information network	10,536,913.35	Receipt of contract advance
equipment	payment
and consumer
electronics
Intelligent factory	3,477,327.84	Receipt of contract advance
payment
Total	22,980,603.58
- 66 -

(10) LEASE LIABILITIES

Balance at
Closing	the end of
Item	balance	last year
Lease payments	9,341,153.22	10,252,965.99
Less: unrecognized financial lease expenses	1,199,451.13	1,326,558.48
Total	8,141,702.09	8,926,407.51

(11) OPERATING REVENUE AND OPERATING COST

Item	Revenue	Cost
Primary businesses	3,920,532,931.47	3,340,516,422.87	4,600,788,758.77
Other businesses	31,732,090.68	6,170,262.02	59,258,243.15
Total	3,952,265,022.15	3,346,686,684.89	4,660,047,001.92

Preceding period Revenue

Current period

(12) INCOME TAX EXPENSES

Cost 3,949,411,335.30 6,527,137.40

3,955,938,472.70

List of income tax expenses
Item	Current period	Preceding period
Current income tax expenses	34,794,537.97	36,480,258.11
Deferred income tax expenses	-605,818.35	-2,755,820.88
Total	34,188,719.62	33,724,437.23

2. Explain of the relationship of income Tax Expenses and accounting profit
3. Different taxpayers with different corporate income tax rates were disclosed as follows:


Item	Current period
Total profit	151,969,920.21
Income tax expenses calculated at the applicable tax rate	37,992,480.05
Different tax rate of subsidiaries	-9,771,747.29
Adjustment on previous income tax	-1,355,348.34
Income not subject to tax	-16,905,110.22
Expenses not deductible for tax purposes	2,722,751.07
Utilisation of previously unrecognised tax losses for the
current period
Unrecognised deductible temporary difference and
deductible tax loss for the current period	55,759,537.27
Effect of additional deducible cost under tax law	-34,253,842.92
Income tax expenses	34,188,719.62

Name of the enterprise	Income tax rate
Nanjing Panda Electronic Manufacture Co., Ltd	15.00%
Nanjing Panda Communication Technology Co., Ltd	15.00%
Nanjing Huage Appliance and Plastic Industrial Co., Ltd	15.00%
Nanjing Panda Information Industry Co., Ltd	15.00%
Nanjing Panda Mechatronics Instrument Technology Co.,
Ltd	15.00%
Shenzhen Jinghua Information Technology Co., Ltd	15.00%
Nanjing Panda Electronic Equipment Co., Ltd	15.00%
Chengdu Panda Electronics Technology Co., Ltd.	15.00%
Shenzhen Jinghua Property Management Co., Ltd	20.00%
Parking lot of Shenzhen Jinghua Electronic Co., Ltd	20.00%
Jinghua Digital Technology Co., Ltd.	20.00%
Shenzhen Jinghua Media Technology Co., Ltd.	20.00%
Shenzhen Jingjia Property Management Co., Ltd	20.00%
Galant Limited	16.50%
JWD Trading (HK) Co., Ltd	16.50%

According to "Enterprise Income Tax Law of the People's Republic of China" and "Regulation on the Implementation of the Enterprise Income Tax Law of the People's Republic of China", domestic enterprises of The Company need to pay the income tax in the mainland China and the tax rate is 25%.

According to Hong Kong "Tax Regulation", Hong Kong enterprises of The Company needs to pay the income tax and the tax rate is 16.5%.

According to national tax preference of high-tech enterprise, the qualified high-tech enterprise can enjoy tax preference of income tax and the tax rate is 15%.

According to national tax preference of small low-profit enterprise, if the enterprise is recognised as small low-profit enterprise, the tax basis is as the 50% of the taxable income, the applicable rate is 20%

(13) RETURN ON NET ASSETS AND EARNINGS PER SHARE

Profit of the reporting periodWeighted average return on net assets

Earnings per share (RMB)Basic

Diluted

(%)Net profit attributable to ordinary shareholders of the Company

2.22

0.0846 0.0846

Net profit after deducting extraordinary profit and loss attributable to ordinary shareholders of the Company

0.52

0.0200 0.0200

(14) SIGNIFICANT CHANGES IN ACCOUNTING POLICIES AND

ACCOUNTING ESTIMATES

1. Significant changes in accounting policy

(1) Implementation of "Interpretation of Accounting Standards for Business Enterprises No. 13"

The Ministry of Finance issued the Interpretation of Accounting Standards for Business Enterprises No. 13 ( Cai Kuai [2019] No. 21, hereinafter referred to as "Interpretation No. 13") on 10 December 2019, which took effect on 1 January 2020 and does not require retroactive adjustment.

Ǻ The identification of related parties
Interpretation No. 13 makes it clear that the following circumstances constitute an affiliated party: a joint venture or or an associated company between the enterprise and other members of the enterprise group (including the parent company and subsidiaries); Joint ventures of an enterprise and other joint ventures or associated companies of an enterprise. In addition, interpretation No. 13 also makes it clear that only two or more enterprises that are materially affected by one party do not constitute affiliated parties, and it also adds that joint ventures include joint ventures and their subsidiaries, and associated companies include associated companies and their subsidiaries.
ǻ Definition of business
Interpretation No. 13 improves the three elements of business composition, elaborates the judgment conditions of business composition, and introduces the choice of "concentration test" to simplify the judgment of whether a portfolio acquired under different control constitutes business to a certain extent.
The Company has implemented Interpretation No. 13 since 1 January 2020, and the comparative financial statements have not been adjusted. Executive Interpretation No. 13 has not had a material impact on the Company's financial position and results of operations.

(2) Implement "Provisions on the Accounting Treatment of Rental Concession Related to COVID-19 Pandemic"

On 19 June 2020,, the Ministry of Finance issued the Provisions on Accounting Treatment of Rental Concession Related to COVID-19 Pandemic (Cai Kuai [2020] No. 10), which will come into force since 19 June 2020, allowing enterprises to adjust the relevant rent concessions that occurred between 1 January 2020 and , the implementation date of this regulation. According to this regulation, enterprises can choose to adopt a simplified method for accounting treatment of rent concessions, such as rent remission and deferred payment, which are directly caused by COVID-19 Pandemic.

The Company chose to adopt the simplified method for accounting treatment of all rent concessions that fall within the applicable scope of the Provisions, and makes corresponding adjustments to the relevant rent concessions that occur between 1 January 2020 and the effective date of the Provisions.

The Company as the lessee adopts a simplified method to deal with the relevant rent concession write-off and deduct the operating costs, administrative expenses and selling expenses of the current period, totaling RMB33,000.00.

2. The change in significant accounting estimates

There is no change in significant accounting estimates for the period.

(15) OTHER EVENTS

1. Guarantees provided for subsidiaries
On 2 February 2021, the Company provided guarantee to the second-level subsidiaries of the Company which are Nanjing Panda Electronic Equipment Co., Ltd., and Nanjing Huage Appliance and Plastic Industrial Co., Ltd, in the amount of RMB100 million, RMB50 million financing in China Electronic Finance Co., Ltd., valid until 19 January 2022. This guarantee has no counter guarantee. As of 26 March 2021, the balance of the guarantee provided by the Company to Nanjing Panda Electronic Equipment Co., Ltd is RMB3.8776 million, and the balance of the guarantee provided to Nanjing Huage Appliance and Plastic Industrial Co., Ltd is RMB8.5108 million, which is within the limit approved by the general meeting of shareholders.
On 9 February 2021, the Company provided a guarantee to a third-level subsidiary of the Company that Nanjing Panda Electromechanical Manufacturing Co., Ltd. in the amount of RMB15 million in Nanjing Branch of Industrial Bank Co., Ltd., valid until 12 January 2022. This guarantee has no counter guarantee. As of 26 March 2021, the actual balance of the guarantee provided by the Company to Nanjing Panda Electromechanical Manufacturing Co., Ltd. is RMB5,934,000, which is within the limit approved by the general meeting of shareholders.
2. Reduction of shares by shareholders
The shareholder of the Company, China Huarong Asset Management Co., Ltd. has implemented the shareholding reduction plan implemented after 15 trading days after the announcement on 12 August 2020, which has been completed on 1 March 2021. The shareholding reduction plan has not been reduced by China Huarong Asset Management Co., Ltd.

On 2 March 2021, the Company received a written document from China Huarong Asset Management Co., Ltd. (hereinafter referred to as "China Huarong") regarding its shareholding reduction plan. The main content of the shareholding reduction plan is as follows: China Huarong plans to reduce its shareholding by no more than 18,276,770 A shares, accounting for 2% of the total share capital of the Company, due to its own business needs. The selling period is six months commencing on the day which falls on the expiry of 15 trading days following 2 March 2021. The reduction will be conducted through the way of centralized bidding at market price.

As at 26 March 2021, China Huarong Asset Management Co., Ltd., a shareholder of the Company, held 64,471,891 A shares of the Company, accounting for 7.06% of the total share capital of the Company, all of which were tradable shares not subject to trading moratorium. The shares held is acquired from share swap.

The total number of shares that China Huarong undertakes to reduce through centralized bidding on the stock exchange within 90 consecutive days will be no more than 1% of the total number of shares of the listed company. China Huarong will decide whether to implement the shareholding reduction plan according to the market conditions and the price of the shares of the Company. The selling time and selling price are subject to uncertainties.

By Order of the Board

Nanjing Panda Electronics Company Limited

Zhou Guixiang

Chairman

Nanjing, the People's Republic of China

26 March 2021

As at the date of this announcement, the Board comprises Executive Directors: Mr. Zhou Guixiang, Mr. Lu Qing and Mr. Xia Dechuan; Non-executive Directors: Mr. Shen Jianlong, Mr. Deng Weiming and Mr. Li Changjiang; and Independent Non-executive Directors: Ms. Du Jie, Mr. Zhang Chun and Mr. Gao Yajun.

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Nanjing Panda Electronics Company Ltd. published this content on 26 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2021 15:24:04 UTC.

End-of-day quote Shanghai S.E. Other stock markets 06:00:00 2024-04-22 pm EDT			5-day change	1st Jan Change
8.6 ^CNY	-0.92%		+9.00%	-35.09%

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Nanjing Panda Electronics Company Limited Provides Earnings Guidance for the Year Ended December 31, 2023	Jan. 30	CI
Nanjing Panda Electronics Company Limited Appoints Lv Song as Non-Executive Director and Member of the Audit Committee	Nov. 20	CI
Nanjing Panda Electronics Company Limited Announces Resignation of Shen Jianlong as Non-Executive Director	Nov. 14	CI
Nanjing Panda Rejigs Senior Management	Nov. 10	MT
Nanjing Panda Electronics Company Limited Announces Change of Senior Management Members	Nov. 10	CI
Nanjing Panda Electronics Records Loss in Q3	23-10-31	MT
Nanjing Panda Electronics Company Limited Reports Earnings Results for the Nine Months Ended September 30, 2023	23-10-30	CI
Nanjing Panda Electronics Company Limited Reports Earnings Results for the Half Year Ended June 30, 2023	23-08-28	CI
Nanjing Panda Electronics to Swing to Loss in H1	23-07-13	MT
Nanjing Panda Electronics Company Limited Provides Estimated Earnings Results for the First Half of Year 2023	23-07-13	CI
Nanjing Panda Electronics Company Limited Proposes Final Dividend for the Year Ended December 31, 2022, Payable on August 10, 2023	23-06-20	CI
Nanjing Panda Electronics Chairman Steps Down	23-06-06	MT
Nanjing Panda Electronics Company Limited Appoints Liu Jianfeng as Non-Executive Director	23-06-06	CI
Nanjing Panda Electronics Company Limited Announces Resignation of Zhao Ji as Chairman of the Supervisory Committee	23-06-06	CI
Nanjing Panda Electronics Company Limited Announces Resignation of Zhou Guixiang as Chairman and A Director	23-06-06	CI
Nanjing Panda Electronics Incurs Q1 Loss on 47% Plunge in Revenue	23-04-30	MT
Nanjing Panda Electronics Company Limited Reports Earnings Results for the First Quarter Ended March 31, 2023	23-04-27	CI
Nanjing Panda Electronics Company Limited Proposes Final Dividend for the Year Ended December 31, 2022, Payable on August 10, 2023	23-03-30	CI
Nanjing Panda Electronics Deputy General Manager Resigns	22-12-30	MT
Nanjing Panda Electronics Company Limited Announces Resignation of Huang Shaofeng as Deputy General Manager	22-12-30	CI
Nanjing Panda Electronics Company Limited Announces Resignation of Senior Management Member	22-11-03	CI
Nanjing Panda Electronics Narrows Q3 Loss	22-10-26	MT

	1st Jan change	Capi.
NANJING PANDA ELECTRONICS COMPANY LIMITED	-35.09%	873M
KEYENCE CORPORATION	+6.12%	101B
HEXAGON AB	+2.56%	30.48B
BOE TECHNOLOGY GROUP COMPANY LIMITED	+7.95%	21.41B
TELEDYNE TECHNOLOGIES INCORPORATED	-8.79%	19.29B
KYOCERA CORPORATION	-5.27%	17.4B
ZEBRA TECHNOLOGIES CORPORATION	+1.18%	14.21B
FLEX LTD.	-6.34%	12.02B
HALMA PLC	-2.10%	10.49B
HUIZHOU DESAY SV AUTOMOTIVE CO., LTD.	-9.35%	8.99B

Nanjing Panda Electronics Company Limited

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600775

CNE000000NB7

Electronic Equipment & Parts

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